* U.S. dollar rises, global stock markets weaken
* U.S. auto task force rejects GM, Chrysler plans
* Japan Feb. industrial output falls 9.4 pct month/month
(Recasts, updates prices, market activity)
By Rebekah Kebede
NEW YORK, March 30 (Reuters) - Oil dropped by more than 7
percent to below $49 a barrel on Monday, weighed down by the
stronger U.S. dollar and weaker stock markets.
U.S. oil for May delivery <CLc1> settled at $48.41 a
barrel, down $3.97. The contract fell $1.96 to settle at $52.38
a barrel on Friday, pulling back from Thursday's four-month
high.
London Brent crude <LCOc1> fell $3.94 to $48.04 a barrel by
3:03 p.m. (1903 GMT).
"The weaker stock market, the stronger dollar -- those are
the two main factors in crude's big fall today," said Phil
Flynn, an analyst at Alaron Trading in Chicago.
The dollar rallied on Monday as fears of bankruptcy for
U.S. automakers GM <GM.N> and Chrysler LLC prompted anxious
investors to seek safety in the U.S. currency. []
A White House task force rejected restructuring plans from
the two automakers and instead forced out General Motors' chief
executive and pushed Chrysler toward a merger. []
U.S. stocks dropped on the news of the Obama
administration's rejection of GM and Chrysler's turnaround
plans, dragging down oil prices further. []
Bank bailouts by three European governments also pressured
stocks. []
WEAK GLOBAL ECONOMY
Weakness in the global economy continued to be one of the
underlying factors pressuring oil prices.
Industrial output from Japan, the world's No. 3 energy
consumer, fell by a greater-than-expected 9.4 percent in
February, as weak demand weighed on the country's economy.
[]
The Organisation for Economic Cooperation and Development
said on Sunday that unemployment rates were set to reach double
digits in many developing and advanced countries.
[]
However, analysts said any signs the U.S. economy was
stabilising offered some underlying support for oil, keeping
prices above the psychologically important $50-a-barrel level.
U.S. President Barack Obama said in an interview published
on Sunday he saw "glimmers of stabilization" in some areas of
the U.S. economy, including pockets of the domestic housing
market. []
Leaders of the Group of 20 developed and developing nations
meet on April 2, with OPEC hoping it will agree measures to
shore up the global economy and bolster oil demand.
Gulf OPEC producers see an oil price of about $50 a barrel
as good enough given the global economic slowdown and the
seasonal fall in fuel demand, a senior Gulf OPEC delegate said
on Monday. []
(Additional reporting by Joe Brock in London; Editing by
Christian Wiessner)
