* New frontmonth Feb rises towards $43 on weaker U.S.
dollar
* Saudi Arabia, Kuwait try to scotch doubts on OPEC curbs
* Gunmen attack vessels in Nigeria, Russians kidnapped
(Updates prices, adds details)
By Fayen Wong
PERTH, Dec 22 (Reuters) - Oil rose to near $43 a barrel on
Monday, helped by tough talk from top OPEC producers of
compliance with their record output cut and a weaker U.S.
dollar, while U.S. data showed speculators betting on a bounce.
But analysts said the rebound, which came after prices
dropped to a four-year low of $33.87 on Friday, was expected to
be short-lived as downside risks continued to lurk.
U.S. light crude for delivery in February <CLc1>, when cuts
in OPEC production were expected to take hold, rose 54 cents to
$42.90 a barrel by 0800 GMT, after climbing to as high as
$43.44 earlier.
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 40 cents to $44.40.
"Prices are on a rebound after the sharp falls last week. A
weaker U.S. dollar and OPEC (talks) are also influencing
prices," said Ryuichi Sato, an analyst at Mizuho Corporate Bank
in Tokyo.
"But we think this rebound is temporary because there is
still a lot of downside risks on the economic front and market
sentiment remains very bearish."
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 hopes 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. []
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 the global economic crisis slashes 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 said separately on
Sunday 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 Asian refiners, many of which had expected at least
some of OPEC's biggest producers to make deeper visible cuts in
January oil shipment schedules over the weekend, have yet to
receive notice from OPEC's core Gulf members of any further
reductions to oil supplies since the group announced cuts last
week. []
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. []
Global spending on oil/gas exploration and production will
shrink 12 percent to $400 billion in 2009 as the steep slide in
energy prices and tight credit markets reverse a six-year trend
of rising budget, analysts at Barclays Capital said.
(Editing by Ramthan Hussain)
