* New frontmonth Feb rises above $43 on weaker U.S. dollar
* Saudi Arabia, Kuwait try to scotch doubts on OPEC curbs
* Gunmen attack vessels in Nigeria, Russians kidnapped
By Fayen Wong
PERTH, Dec 22 (Reuters) - Oil rose more than $1 to above
$43 a barrel on Monday, buoyed by a weaker U.S. dollar and
tough talk from top OPEC producers of compliance with their
record output cut, while U.S. data showed speculators betting
on a bounce.
U.S. light crude for delivery in February <CLc1>, when cuts
in OPEC production were expected to take hold, rose 93 cents to
$43.30 a barrel by 0126 GMT. The January crude contract expired
on Friday, when it traded at a deep discount to February as key
mid-continent storage tanks filled to near overflowing.
London Brent crude <LCOc1> gained 69 cents to $44.69.
"The U.S. dollar has weakened after the sharp rebound on
Friday. That's one of factors pushing oil higher," said Toby
Hassall, chief analyst at Commodities Warrants Australia.
A surge in net speculative investment in the crude complex
to its highest since mid-May, as of Dec. 16 data, also fed the
emerging view that markets may have hit bottom for now,
although fears over the outlook for demand tempered hope for a
bounce.
Speculators increased their net length to 64,120 lots
during the week to last Tuesday, a surge from 10,807 the
previous week, Commodity Futures Trading Commission data
showed. []
"I suspect in the last couple of weeks we probably saw a
bottom in the oil market and that is also attracting some
buying interest," said Hassall.
The U.S. dollar fell against the euro on Monday, giving up
some of its gains made after the U.S. government offered a
lifeline to U.S. carmakers, as investors remained concerned
over the deepening economic recession. []
Oil prices have fallen more than $100 from their peak of
above $147 in July as a global economic crisis slashes global
oil demand.
Pledges by OPEC last week to cut output by 2.2 million
barrels per day (bpd) -- its deepest ever supply cut -- have
failed to stem the slide in January oil prices, which expired
on Friday at $33.87 a barrel, the lowest since February 2004.
OPEC kingpin Saudi Arabia moved to scotch doubts on Sunday
on the cartel's pledge to cut oil production to stabilise world
oil markets, while Kuwait's oil minister also said separately
on Sunday that he was confident that OPEC members will comply
with latest output cuts decided by the group. []
"Don't doubt the efforts of OPEC or its members to return
the oil market to stability," Saudi Arabia's Ali al-Naimi told
reporters. [].
But some analysts said doubts would linger.
"With the cartel, compliance is always going to be an
issue. We have yet seen the full impact of the previous supply
cuts and that will take some time to come through," Hassall
said.
In OPEC member Nigeria, where production has been hindered
for years by repeated militant attacks, gunmen in speedboats
attacked three oil services ships and kidnapped at least two
Russians in separate incidents in the Niger Delta, sources said
on Saturday. []
(Editing by Jonathan Leff)
