* IMF set for sharp cuts in global growth forecasts
* February contract expires up 6 percent on short-covering
* Focus on bearish demand; U.S. crude stocks data seen up
(Adds details, updates prices)
By David Sheppard
LONDON, Jan 21 (Reuters) - Oil edged above $41 a barrel on
Wednesday, as further evidence emerged of a deepening global
slowdown that is crushing demand for fuel.
U.S. light crude for March delivery <CLc1> rose 56 cents to
$41.40 a barrel by 0934 GMT on its first day as the new front
month contract.
The February contract, which expired on Tuesday, settled up
$2.23, or about 6 percent, at $38.74 a barrel, on short-covering.
London Brent crude <LCOc1> rose 52 cents to $44.14 a barrel.
"We're consolidating a little bit after yesterday's late
bounce on the February contract expiry," said Andrey
Kryuchenkov, vice president commodities research at VTB Capital
in London.
"Sentiment continues to be very bearish as strong demand
just doesn't look like emerging in the current climate."
The International Monetary Fund is set to sharply cut
growth forecasts this month and the world will not return to
strong growth for two to three years, IMF Managing-Director
Dominique Strauss-Kahn said on Wednesday. []
The International Energy Agency (IEA), a leading energy
watchdog, last week joined the ranks of forecasters predicting a
fall in global oil demand this year in light of the slowing
economic outlook. The IEA sees demand falling by 500,000 barrels
per day (bpd) in 2009 to 85.3 million bpd. []
Oil has plunged from record highs above $147 a barrel in
July as oil consumption has dropped, prompting the Organization
of Petroleum Exporting Countries (OPEC) to agree to a series of
output cuts.
OPEC is fully enforcing its deepest ever oil supply curbs,
whichh should be enough to boost prices, the group's president,
Angolan oil minister Botelho de Vasconcelos, told Reuters on
Tuesday. []
But prices remain at levels not seen since 2004.
China, one engine in the six-year commodity price rally that
started in 2002, was expected to release fourth-quarter GDP data
this week that economists say will show 7.0 percent growth, the
slowest pace of expansion in nearly a decade for the world's
third-biggest economy. []
A Reuters poll of analysts forecast that crude oil stocks in
the United States, the world's biggest energy consumer, rose by
1.4 million barrels last week, with distillate stocks seen down
1.4 million barrels due to cold winter weather.
Gasoline stocks are expected to be up 2.1 million barrels,
up 5.1 million barrels from a year ago.
Data will be released on Thursday, a day later than usual,
following the U.S. holiday on Monday honoring civil rights
leader Martin Luther King Jr. []
(Additional reporting by Maryelle Demongeot in Singapore;
Editing by Peg Mackey)
