UPDATE 2-Oil drops below $82 as Goldman news hits risk appetite

                                
   * Pressure mounts on Goldman from near and far
                                
 * U.S. dollar rises as investors seek safe-haven
investments
                                
 * Asian stocks fall on fading risk appetite (Recasts, adds
details)
                                
 By Fayen Wong
                                
 PERTH, April 19 (Reuters) - Oil prices sank to a three-week
low of below $82 a barrel on Monday, extending the previous
session's 2.7-percent decline, as risk appetite soured across
the board after investment bank Goldman Sachs <GS.N> was
charged with fraud.
                                
 Goldman, which has large positions across many markets
including commodities, was charged with fraud by the U.S.
Securities and Exchange Commission (SEC) over its marketing of
a subprime mortgage product. The news dragged down broad U.S.
equity indexes. [ID:nN16123404]
                                
 The banking powerhouse also saw pressure building on both
sides of the Atlantic on Sunday, with Germany and the U.K.
saying that they will seek details from the SEC about Goldman's
activities as a prelude to potential legal steps following a
U.S.-led fraud investigation. [ID:nN18150564]
                                
 U.S. crude for May delivery <CLc1> fell $1.44 to $81.80 by
0146 GMT, after having dropped as low as $81.73 -- the lowest
since March 29. The contract already fell 2.65 percent on
Friday, the largest one-day percentage loss since Feb. 5.
                                
 London Brent crude fell $1.21 to $84.78.
                                
 "We are seeing a spillover reaction to news of Goldman
being charged," said David Moore, an analyst at the
Commonwealth Bank of Australia in Sydney.
                                
 "It's mainly a sentiment issue; oil prices have risen very
strongly in recent weeks on bullish sentiments and anticipation
of a demand recovery later this year. So it is naturally very
vulnerable to a correction when market sentiments change."
                                
 Goldman has vowed to defend itself.
                                
 For more on Goldman fraud charges, see [ID:nN16131161]
                                
 The fraud charges, along with disappointing earnings from
heavyweights on Friday, dragged Asian stocks lower on Monday,
with the Japan's Nikkei index falling to a three-week low.
                                
 Tepid risk appetite also prompted the U.S. dollar to rise,
stretching gains in Asian trade on media reports that a wave of
lawsuits was being planned against Goldman Sachs. [USD/]
                                
 London's Times newspaper reported on Monday that lawyers
spent the weekend hunting for investors who lost money to join
a potential action against the bank.
                                
  Oil prices have risen strongly in recent weeks, topping
an
 18-month high of above $87 earlier this month, as robust
economic data buoyed hopes of a demand recovery.
                                
 But some analysts have said that prices have run ahead of
demand fundamentals, while a senior analyst at the
International Energy Agency said on Friday that oil prices at
$85 per barrel could endanger the fragile global economic
recovery. [ID:nLDE63F144]
                                
 On the geopolitical front, markets may keep an eye on Iran
on Monday after Pentagon officials said U.S. President Barack
Obama's national security advisers are considering a range of
options to curb Iran's nuclear programme, among them military
strikes, if diplomacy and sanctions fail. [ID:nN18123232]
                                
 Separately, money managers cut net crude oil long positions
on the New York Mercantile Exchange in the week to April 13,
scaling back from a record level of net longs in the previous
week, Commodity Futures Trading Commission data showed on
Friday. [ID:nN16565839]
 (Editing by Himani Sarkar)