* Fed seen standing pat on rates after 2-day policy meet
* OPEC seen keeping output targets steady at Wednesday's
meet
* Coming Up: U.S. Feb industrial output; 1315 GMT
By Jennifer Tan
SINGAPORE, March 15 (Reuters) - Oil eased below $81 a
barrel on Monday, extending the previous session's losses, as
data showing a drop in U.S. consumer confidence fanned worries
about flagging demand in the world's top energy user.
The market will scour U.S. February industrial output data,
due later, for further clues to the health of the world's
largest economy, and a statement from the Federal Reserve at
the end of its two-day interest rate-setting meeting on
Wednesday, for evidence the recovery is still on track.
"Sentiment is a bit mixed today, with prices driven lower
by profit-taking, as stronger-than-expected U.S. February
retail sales were offset by a decline in March consumer
confidence," said Ben Westmore, commodities analyst at the
National Australia Bank in Melbourne.
"The market will await further clues on demand outlook from
the Fed's rate decision on Wednesday."
By 0243 GMT, U.S. crude for April delivery <CLc1> had
fallen 47 cents to $80.77 per barrel, after settling at $81.24
on Friday. London Brent crude <LCOc1> was down 39 cents at
$79.00.
U.S. consumer sentiment declined slightly in early March,
with Americans less positive about the job outlook, a survey
released on Friday showed. []
But February retail sales rose unexpectedly, despite heavy
snow storms that were thought to have kept shoppers at home and
bolstered hopes of a sustainable economic recovery.
[]
At 1315 GMT, the Federal Reserve will unveil industrial
output and capacity utilisation data for February.
Economists expect a 0.1 percent fall in production and
capacity usage of 72.6 percent, compared with January's rise of
0.9 percent in production and a capacity usage of 72.6
percent.
The Fed is expected to hold benchmark rates near zero and
reiterate its pledge to keep them low for an "extended period",
due to lingering weakness in the U.S. jobs market and nagging
doubts over the solidity of the economic rebound.
But since U.S. consumers are buying more and companies
appear to be on the verge of hiring again, policymakers in the
Fed may ponder on how long to keep its ultra-low rate pledge.
[]
Investors will try to tack another leg on to the year-long
U.S. stock rally, looking to this week's economic data and
statement from the central bank for cues. []
After tumbling during the fourth-quarter earnings season,
the S&P 500 has climbed back to its mid-January levels, racking
up a 17-month closing high last week. But the index's hold on
the key 1,150 level is tentative and closed just below it on
Friday.
Friday's solid U.S. retail sales data buoyed the greenback
against the yen on Monday, but the Japanese currency hovered
within striking distance of three-week lows on growing
expectations the Bank of Japan could mull loosening monetary
policy further this week. []
Sources have told Reuters Japan's central bank is leaning
towards easing monetary policy again at its two-day policy
review that ends on Wednesday. []
On the supply front, the market will also eye the outcome
of OPEC's meeting later this week.
The Organization of the Petroleum Exporting Countries,
which pumps at least one in every three barrels of oil, meets
in Vienna on Wednesday to discuss production policy.
Officials have said they do not expect a change in targets
while prices are within their desired range. []
OPEC has restricted output since the onset of the financial
crisis in a bid to support prices. But the group's compliance
with its officially targeted cut of 4.2 million barrels per day
(bpd) has slipped to just 53 percent as prices have risen.
(Editing by Clarence Fernandez)
