* IEA cuts global oil demand forecast
* U.S. crude stockpiles rise more than expected
* Eyes on U.S. jobless and retail sales data at 1330 GMT
(Updates throughout, changes dateline, pvs PERTH)
By Christopher Johnson
LONDON, Feb 12 (Reuters) - Oil slipped further below $36 a
barrel on Thursday as worries over the health of the global
economy and forecasts for a hefty fall in global energy demand
weighed on sentiment.
Global economic downturn is taking its toll on oil
consumption, and supply still appears to be outstripping demand
in many parts of the world, despite production cuts by members
of the Organization of the Petroleum Exporting Countries.
Oil prices continued to weaken despite a deal in the U.S.
Congress on Wednesday on $789 billion in new spending and tax
cuts [].
U.S. light crude for March delivery <CLc1> was down 34 cents
at $35.60 at 0930 GMT.
London Brent crude <LCOc1> was up 18 cents at $44.46,
stretching its premium over U.S. oil to near record levels of
above $9 hit last month.
Traders said the short-term direction of the market was
being dominated by movements in stock markets, which opened
lower in Europe on Thursday, and the dollar, which rose against
a basket of major currencies. [] []
"Overall the market appears to be slipping," said a dealer
at a large London brokerage. "Oil demand is falling and a lot of
attention is being paid to macro-economic data."
U.S. JOBLESS
Traders awaited U.S. weekly jobless claims and January
retail sales data due at 1330 GMT on Thursday, which will give a
clearer indication of how the U.S. economy is faring.
Oil has tumbled around 10 percent this week, having fallen
four sessions in a row since last Friday, on demand worries and
fears the U.S. bank rescue plan would not go far enough to
revive the ailing financial sector.
Oil prices took a battering on Wednesday after the U.S.
Energy Information Administration said domestic crude stocks had
increased 4.7 million barrels to 350.8 million in the week to
Feb. 6, against a forecast for a rise of 3.1 million. []
The latest increase in U.S. crude stocks comes on the heels
of a combined rise of more than 13 million barrels in the prior
two weeks, and crude inventories are now moving significantly
above their five-year range.
Oil's losses were further exacerbated by a separate report
from the International Energy Agency forecasting global demand
to contract by nearly a million barrels per day (bpd) -- the
most since 1982 -- to 84.7 million bpd in 2009. []
Underlining the damage caused by the global financial
crisis, data showed global trade activity in goods and
commodities had tumbled.
The March Brent ICE futures contract expires on Thursday and
traders said they expected the premium for Brent over U.S. crude
futures, also known as WTI, to stretch further, reflecting very
high stock levels at Cushing, the delivery point for the U.S.
futures contract.
"We are probably going to see WTI maintain or worsen its
discount to Brent," said Harry Tchilinguirian, analyst at BNP
Paribas in London.
(Additional reporting by Fayen Wong in Perth; editing by
William Hardy)
