* Economic stimulus-driven rally runs out of steam -analyst
* Coming Up: U.S. industrial output for Sept; 1315 GMT
By Alejandro Barbajosa
SINGAPORE, Oct 18 (Reuters) - Oil fell towards one-week
lows on Monday as a rebound in the dollar prompted investors to
halt their charge into commodities, while waiting for details
about U.S. economic stimulus measures.
U.S. crude for November <CLc1> fell 47 cents to $80.78 by
0030 GMT, extending last week's drop of 1.7 percent. It touched
$80.30 on Oct. 8, the lowest price since the beginning of the
month, after reaching a five-month high of $84.43 a day
earlier. December ICE Brent <LCOc1> fell 48 cents to $81.97.
U.S. Federal Reserve Chairman Ben Bernanke on Friday
offered his most explicit signal yet that the U.S. central bank
was set to ease monetary policy further in a debt purchase
program described as a second round of quantitative easing, or
QE2, but gave no details on when, or how aggressively, it might
act.
"QE2, which had been progressively bullish for oil over the
course of September and into early October, ran out of steam as
a driver for prices, at least for the time being, and probably
until it is actually announced, along with details of its
implementation," by November 3, when the next Fed meeting
concludes, said Mike Wittner, Societe Generale's head of oil
market research.
U.S. inflation unexpectedly slowed in September, despite a
pick-up in retail sales, the government said. A survey showed
the country's consumer sentiment unexpectedly dipped in early
October to its weakest level since July. []
Two top Federal Reserve officials over the weekend argued
for further aggressive action by the central bank, with one
saying the economy needs "much more" help and the other
pointing to Japan's painful lessons. []
The U.S. dollar rose from a more than eight-month low
against the euro on Friday, extending gains against a basket of
currencies on Monday by more than 0.2 percent, on bets recent
declines were overdone, but a sustained rebound is unlikely
given expectations for further U.S. monetary easing. []
World stocks slid on Friday as concerns about a growing
U.S. foreclosure crisis undermined the initial boost from
Bernanke's speech indicating more monetary stimulus was on the
way. []
Asian stocks were seen likely to open mixed on Monday, as
optimism over further policy support for the world's largest
economy was offset by concerns over bank exposure to the U.S.
mortgage market. []
In France, President Nicolas Sarkozy is facing a
make-or-break week for his unpopular pension reform as rail and
refinery workers, truck drivers and street marchers ramp up
pressure to scrap it before a crucial Senate vote.
Key oil producer Saudi Arabia is holding a conference in
Riyadh on Monday to mark the 50th anniversary of the
Organization of the Petroleum Exporting Countries (OPEC), which
the kingdom's oil minister Ali al-Naimi is scheduled to
attend.
(Editing by Clarence Fernandez)
