UPDATE 7-Oil slips on euro zone debt woes, dollar

                                
 * Euro zone debt contagion risk helps pressure commodities
                                
 * Dollar index bounces, euro retreats, pressuring oil
                                
 * Coming up: API oil inventory data, 4:30 p.m. EST Tuesday
 (Recasts, updates with settlement prices and market activity)
                                
 By Robert Gibbons
                                
 NEW YORK, Nov 22 (Reuters) - Oil prices fell on Monday in
choppy trading, pressured by a stronger dollar that bounced as
optimism over a debt bailout for Ireland gave way to concerns
that financial problems would spread to other euro zone
countries.
                                
 U.S. gasoline futures added to the pressure on crude oil
prices, slumping amid expectations that refinery restarts and
imports from Europe will relieve tight supplies in the New York
Harbor region, the delivery point for the U.S. gasoline futures
contract.
                                
 U.S. crude for January delivery <CLc1> fell 24 cents to
settle at $81.74 a barrel.
                                
 Prices jumped to $82.87 early, before the dollar rallied
and helped push them as low as $80.68. Brokers and analysts
noted that support is expected at the January contract's $80.65
low from last week set before January took over the front-month
position when the December contract expired on Friday.
                                
 In London, ICE January Brent crude <LCOc1> fell 38 cents to
settle at $83.96 a barrel.
                                
 "Crude oil is down in reaction to the dollar, which is
firmer," said Phil Flynn, analyst at PFGBest Research in
Chicago.
                                
 "There is concern about contagion in the euro zone, and
that's keeping the market on edge. But volume is light ahead of
the Thanksgiving holiday."
                                
 Total crude oil trading volume was around 412,000 contracts
with less than an hour left of post-settlement trading, about
37 percent below the 30-day average.
                                
 The euro slumped against the dollar as worries about how a
financial bailout for Ireland will be implemented curbed
initial optimism, prompting a euro retreat from a one-week high
reached earlier in the session on news of the rescue deal.
                                
 The European Union and International Monetary Fund agreed
on Sunday to help bail out Ireland with loans to tackle its
banking and budget crisis after the country formally requested
aid. The deal is expected to total 80 billion to 90 billion
euros ($109.8-$123.6 billion). [ID:nLDE6AK039]
                                
 A stronger dollar typically pressures oil and commodities
prices as it caps investor appetite for riskier assets and
makes dollar-denominated oil more expensive for consumers
buying with other currencies.
                                
 In addition to the problems in Europe that could threaten
oil demand, oil investors remain cautious amid concerns China
will do more to cool inflation even after last week's increases
in bank reserve requirements. [ID:nTOE6AK01P]
                                
 "There are also views that the bank reserve hikes, which
China has introduced recently, are not enough to curb
inflation," the Mizuho Corporate Bank said in a research note.
                                
 Copper prices fell on lower imports from top metals
consumer China and on the Irish bailout fluctuations [MET/L]
and U.S. equities felt pressure from the turmoil of the Irish
bailout deal. [.N]
                                
 U.S. GASOLINE EXTENDS SLUMP
                                
 U.S. gasoline futures prices <RBc1> extended their slump
from Friday, ending 2 percent lower on refinery restarts
[REF/US] in the U.S. Northeast.
                                
 Gasoline futures rose 3 percent last Thursday, a jump
attributed to the unexpectedly large drop in gasoline stocks in
the week to Nov. 12 reported by the government [EIA/S] that
added to concerns about tight supplies in the New York Harbor.
                                
 Also tempering gasoline prices were expectations that
imports to the region will be revived now that the recent
French port and refinery strikes are over.
                                
 EYEING SAUDI ARABIA
                                
 A Saudi oil industry official told Reuters on Monday that
$80 per barrel was a good price for oil under current market
conditions. [ID:nLDE6AL03S]
                                
 The remarks were in line with those earlier this month from
Saudi Oil Minister Ali al-Naimi, who said prices between $70
and $90 a barrel were comfortable for consumers, a shift from
previous remarks stating $70-$80 was the ideal range.
                                
 Elderly King Abdullah of Saudi Arabia flew to the United
States on Monday for medical checks for a back ailment, and
Crown Prince Sultan returned from a holiday abroad.
[ID:nLDE6AL0PW] Oil investors closely monitor such developments
in the world's top oil exporting nation.
 (Additional reporting by Gene Ramos in New York, Ikuko
Kurahone in London, Florence Tan and Luke Pachymuthu in
Singapore)