* Firmer dollar, China's expected policy tightening weigh
* Fed benchmark rate announcement expected on Tuesday
* OPEC seen keeping output targets steady at Wednesday talks
(Updates price, adds comment)
By Chris Baldwin
LONDON, March 15 (Reuters) - Oil fell below $80 a barrel on
Monday, pressured by a stronger dollar, while the market watched
for signals ahead of an OPEC meeting this week and decisions
expected from European, U.S. and Japanese banking and government
sectors.
U.S. crude for April delivery <CLc1> fell $1.40 to $79.84
per barrel by 1401 GMT, after dropping to as low as $79.59.
London Brent crude <LCOc1> was down $1.43 at $77.96.
The dollar edged up on Monday against the euro and yen after
U.S. industrial data showed an increase in output in February
despite severe winter storms that shut down much of the
country's transport sector.[]
A stronger dollar tends to pressure oil because it makes
dollar-denominated commodities more expensive for other currency
holders.
Analysts said more significant developments for the dollar
were expected on Tuesday.
"The market moves after the Empire Manufacturing data and
U.S. industrial output are just noise," said Thorbjorn Bak
Jensen, oil market analyst with A/S Global Risk Management in
Denmark.
"Today is waiting for tomorrow for the Ecofin meeting on a
Greece bailout and the U.S. and Japanese central banks to do
something," said Jensen.
ECOFIN PRAISE
Euro zone finance ministers are likely to praise Greek
austerity efforts on Monday and discuss a support mechanism on
Tuesday that Athens could use to finance its borrowing needs if
necessary.[]
Also on Tuesday, 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.[]
On Monday data emerged showing U.S. industrial output edged
up 0.1 percent in February as expected, likely restrained by
severe winter storms that hit part of the country, the Federal
Reserve said.[]
Oil markets were relatively unmoved after a separate report
showing Empire State industrial data in the U.S. fell by less
than forecast in March as employment in the sector rose to its
highest since October 2007.[]
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 how long to keep its ultra-low rate pledge.
[]
CHINA MOVES
China's central bank is seen raising bank reserve
requirement ratios as early as this week, while some say it may
wait a while before raising benchmark deposit and lending rates.
"On China, we do not believe that the early monetary
tightening moves are negative for China's GDP and oil demand
outlook," said Mike Wittner, global head of oil research at
Societe Generale in their quarterly Commodities Review.
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.
Iranian oil minister Masoud Mirkazemi told a news conference
in Tehran that low global demand means Iran wants OPEC "to keep
its current production ceiling."[]
(Additional reporting by Jennifer Tan in Singapore, editing by
Anthony Barker)
