* Oil prices near lowest level in four years
* Market eyes $40 as slowdown hurts demand
* OPEC expected to cut by significant amount on Dec. 17
* Eyes on U.S. jobs data for clues on demand
(Updates throughout, previous SINGAPORE)
By Christopher Johnson
LONDON, Dec 5 (Reuters) - Oil steadied around $44 on Friday,
not far off its lowest level in almost four years, as financial
markets awaited U.S. jobs data for clues to the state of demand
in the world's biggest oil consumer.
U.S. non-farm payrolls data was due at 1330 GMT and expected
to show an increase of more than 300,000 in unemployment claims
in November as weakening consumer and business demand prompted
companies to cut jobs to reduce costs. []
Oil prices have lost almost 20 percent from their settlement
a week ago, and are on course for their steepest weekly decline
since March 2003, following the last set of U.S. economic data.
U.S. light crude for January delivery <CLc1> slipped to a
low of $43.39 a barrel, down 28 cents, but later recovered to
trade around $44.16 at 1030 GMT. The contract lost more than 6
percent on Thursday to settle at $43.67, the lowest since Jan.
5, 2005.
London Brent crude <LCOc1> rose 47 cents to $42.75.
"The U.S. figures could set the tone if they are bad and
start to push the financial markets aggressively," said Tony
Machacek, dealer as U.S. broker Bache Financial.
$40 LEVEL
Many dealers and analysts expect oil to test the
psychologically important $40 a barrel level fairly soon as
evidence mounts of a significant decline in oil demand in all
the major developed economies.
U.S. and European companies announced further job cuts on
Thursday, with U.S. phone company AT&T Inc <T.N> saying it would
eliminate 12,000 jobs, while chemical maker DuPont Co <DD.N>
planned to drop 2,500.
Leading U.S. retailers also reported dismal November sales
on Thursday. Totting up the results, the International Council
of Shopping Centers said sales fell by a record 2.7 percent
compared to the same period last year. []
To try and ginger up their feeble economies, European
central banks cut interest rates on Thursday.
Sweden's central bank cut by a record 175 basis points, the
European Central Bank cut by 75 points and the Bank of England
cut by 100 points. []
The price fall to nearly four-year lows has prompted OPEC
members to call for increasingly strong action when the
Organization of the Petroleum Exporting Countries meets next, on
Dec. 17 in Algeria. []
OPEC President Chakib Khelil told Algerian state television
on Thursday that the oil-producing group should cut oil output
by a significant amount at the meeting if prices remain at their
current level. []
But analysts say another OPEC cut, the third since
September, would need to be drastic to provoke a price reaction.
"Cumulatively, OPEC is behind the curve by 4-5 million
barrels per day (bpd). They really need to cut by 2.5 to 3
million barrels to have any impact on prices at the next
meeting. Less than 1.5 million will mean another sell off,"
Edward Meir, commodities analyst at MF Global said.
(Additional reporting by Maryelle Demongeot and Nick Trevethan
in Singapore; editing by James Jukwey)
