UPDATE 1-Oil steady above $40, U.S. stimulus and OPEC support

                                
 * Focus on possible U.S. stimulus package
                                
 * Dismal January U.S. jobs data continues to weigh
                                
 * OPEC president says to cut output again in March if
needed
 (Updates prices)
                                
 By Fayen Wong
                                
 PERTH, Feb 9 (Reuters) - Oil paused from its decline and
stayed above $40 a barrel on Monday, as hopes that the United
States would act swiftly to approve a economic stimulus package
this week outweighed demand concerns.
                                
 Tough talk from the Organization of Petroleum Exporting
Countries (OPEC) that it would cut output again if needed at
its March meeting, violence in Nigeria and renewed tensions
between Iran and the West also lent support.
                                
 U.S. crude for March delivery <CLc1> edged up 3 cents to
$40.20 a barrel in Globex electronic trading by 0641 GMT. The
contract fell $1 to settle at $40.17 a barrel. London Brent
<LCOc1> fell 1 cent to $46.20.
                                
 "Hopes of the U.S. stimulus package being approved this
week are giving some underlying support. The market is adopting
more of a wait-and-see approach now partly because the jobs
data on Friday has dampened sentiment," said Mark Pervan,
commodities analyst at Australia & New Zealand Bank.
                                
 Top aides to President Barack Obama on Sunday urged
Democratic and Republican lawmakers to set aside political
differences and quickly approve a massive economic stimulus
package this week, as the world's largest economy suffers from
the worst financial crisis in 70 years. [ID:nN08458993]
                                
 Oil's fall on Friday was triggered by news of steep job
cuts in the United States, where nearly 600,000 jobs were
slashed last month, the most severe cut since December 1974
[ID:nN06435445], prompting worries of still weaker demand in
the world's biggest oil consumer.
                                
 The financial malaise, which first sprung from housing
mortgage defaults in the United States, has swiftly spread to
Europe and Asia, throwing a string of industrialised nations
into recession.
                                
 The economic slowdown has shaved energy demand around the
world, causing prices to plummet more than $100 from a peak of
near $150 struck last July.
                                
 OPEC will take whatever action is necessary to balance the
oil market when it next meets on March 15, the group's
president said in a statement on Friday. [ID:nWLA6873]
                                
 OPEC sources have indicated the group could cut a further 1
million bpd from output when it next meets, adding to the 4.2
million bpd in cuts announced since September.
                                
 Renewed violence in Nigeria also helped buoy oil prices.
Nigerian militants attacked a gas plant operated by Royal Dutch
Shell <RDSa.L> in the Niger Delta on Saturday and warned of
more attacks to come, but the army said it had repelled the
raid and killed three gunmen. [ID:nL7214715]
                                
 On the geopolitical front, Western powers said on Saturday
Iran risked isolation and more sanctions if it did not comply
with demands to rein in its nuclear programme, but Washington
also reaffirmed its offer for talk with Tehran. [ID:nL7337220]
 (Editing by Ben Tan)