* Risk worries start to outweigh optimism over Japan
economy
* Thin trading with United States and much of Asia closed
(Recasts, updates prices, detail)
By David Sheppard
LONDON, Feb 15 (Reuters) - Oil prices faded below $74 on
Monday, unable to sustain early gains on optimism over Japanese
growth as the thorny issue of Greece loomed over markets.
Public holidays in the United States and much of Asia kept
trade thin and concentrated attention on the euro zone where
European finance ministers were due to meet on Tuesday to
discuss measures to help Greece overcome its debt crisis.
The euro fell against the dollar, hovering close to
nine-month lows as analysts predicted uncertainty would keep
the currency weak. []
European stock markets edged off earlier highs at the close
and a lack of clarity over euro zone support for Greece was
seen capping further gains for equities. []
"It's ... an increasing awareness of risk and risk
aversion," said Eugen Weinberg at Commerzbank. "The dollar has
been strong through the whole day."
U.S. crude for March delivery <CLc1> was down 23 cents at
$73.90 a barrel by 1749 GMT. London ICE Brent for April
delivery <LCOc1> slipped 41 cents to $72.49. Trade was quiet
with prices moving in a very narrow 65-cent range.
Crude fell for the first time in four days on Friday,
shedding 1.5 percent after China's central bank moved to check
the country's rapidly expanding economy, which is at the centre
of rising demand for commodities. []
China's markets are closed this week for the Lunar New Year
holiday, as are markets in South Korea, Taiwan, Hong Kong,
Vietnam, Malaysia and Singapore. In the United States, markets
are closed for Presidents' Day.
DEBT
Debt-stricken Greece faced down pressure from euro zone
peers to step up budget cuts and stem a looming crisis in its
debt markets, as Brussels again questioned its past reporting
of public finances. []
A strong dollar tends to pressure dollar-priced commodities
as they become more expensive for holders of other currencies.
Greek Finance Minister George Papaconstantinou warned
against asking the government to do too much too fast as euro
zone finance ministers gathered in Brussels.
Earlier in the day, oil prices had peeped above $74 on
perceptions demand could get a boost from Japan's economy,
after figures showed it grew faster than expected in the fourth
quarter, helped by government stimulus programmes.
[]
But Japan's demand for oil has been falling in recent
months, as consumers and industry continue to shift to other
forms of energy. []
BP's chief economist, Christof Ruehl, told Reuters on
Monday prices this year should hold to current ranges.
"We would expect oil prices for the remainder of the year
in the current range, perhaps with a slight upwards drift but
no dramatic spikes," Ruehl said at an industry conference in
London. []
For the Reuters Insider TV segment of the interview, please
click on http://link.reuters.com/jeb39h
Oil has traded in a relatively tight $15 range between $69
and $84 a barrel since the beginning of October. At the peak of
the financial crisis, oil crashed below $40 a barrel from a
July 2008 record of almost $150, but expectations of an
economic recovery have supported prices since then.
(Additional reporting by Jo Winterbottom; editing by
Christopher Johnson)
