* Firmer dollar, China's expected policy tightening weigh
* OPEC seen keeping targets steady at Wednesday talks
* Coming Up: Fed rate announcement expected Tuesday
(Updates prices)
By Chris Baldwin
LONDON, March 15 (Reuters) - Oil prices fell 2 percent to
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 $1.63 to $79.61
per barrel by 1543 GMT, after dropping as low as $79.16, the
lowest level since March 2. London Brent crude <LCOc1> traded
down $1.59 at $77.80 a barrel.
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 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 U.S. Federal Reserve 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 storms that hit part of the country, the Federal Reserve
said. []
Oil markets were relatively unmoved after a separate report
showing manufacturing in New York state fell by less than
forecast in March as employment in the sector rose to its
highest level since October 2007. []
But, as U.S. consumers are buying more and companies appear
to be on the verge of hiring again, Fed policymakers may ponder
how long to keep their 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," Mike Wittner, global head of oil research at Societe
Generale, said in their quarterly Commodities Review.
On the supply front, the market will also eye the outcome
of OPEC's meeting 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
Walter Bagley)
