* Oil eases to about $109 as investors take profit
* Market awaiting details on U.S. government's rescue plan
* Saudi Arabia trims oil supply to majors
By Fayen Wong
PERTH, Sept 23 (Reuters) - Oil fell and hovered just above
$109 a barrel on Tuesday as some investors took profits after
prices rallied over $6 in the previous session on weakness in
the U.S. dollar and an improved outlook for U.S. energy demand.
Analysts said traders were likely to wait for details on
the U.S. government's $700 billion Wall Street bailout plan
before making their next move, adding that a speedy approval of
the rescue plan would give psychological support to financial
markets, while delays could add doubts and shake markets
further.
U.S. light crude for November delivery <CLc1> fell 22 cents
to $109.15 a barrel by 0034 GMT, after falling as much as 92
cents at the start of electronic trading.
London Brent crude <LCOc1> rose 5 cents to $106.09.
"I think traders are taking profits after the rally in both
in October and November contracts last night. The market will
probably wait and see what's going to happen to the U.S. rescue
plan before making their next moves," said Gerard Rigby, an
independent energy consultant based in Sydney.
"There are still a lot of question marks on the bailout
plan and the longer it takes to be approved, the more doubts
the market will have."
The November contract settled $6.62 higher at $109.37 on
Monday. The contract for October delivery, however, soared
about $16, or 15.7 percent, to close at $120.92 a barrel when
it expired on Monday -- posting the biggest one-day gain on
record.
The rally in both contracts was due to weakness in the U.S.
dollar as well as an improved outlook for energy demand in the
United States, the world's biggest energy consuming nation,
after the government launched a $700 billion rescue plan to
ease the financial credit crisis.
Since hitting record highs above $147 a barrel in mid-July,
oil prices had tumbled as evidence mounted that high energy
costs and economic woes were undercutting global fuel demand.
U.S. oil demand is running about 4 percent below last year,
according to the latest government data.
But news of Saudi Arabia trimming its supply to oil
majors, ongoing unrest in Nigeria, and higher-than-expected
Chinese imports would be supportive for oil, BNP Paribas' Harry
Tchilinguirian said in a research note.
Top oil exporter Saudi Arabia has trimmed oil supplies to
international majors and U.S. refiners since the start of
September, industry sources said on Monday. []
The slow recovery of the U.S. oil sector after Hurricane
Ike, which caused the biggest disruption to the nation's energy
supplies since 2005, could also keep prices firm, analysts
said.
Nearly 80 percent of oil production in the U.S. Gulf of
Mexico, home to a quarter of all U.S. oil output, remained shut
along with seven refineries.
Ecuador, OPEC's smallest member, said on Monday world oil
prices were expected to remain above $100 a barrel in 2009 and
the oil market would likely stabilise after weeks of
volatility.
Ecuadorean Oil Minister Galo Chiriboga said he saw no need
for an extraordinary OPEC meeting to review output levels as he
expected strong demand in the northern hemisphere due to the
upcoming winter and growing energy demand in Asia
[].
(Reporting by Fayen Wong; Editing by Louise Heavens)
