* European, Japanese stock markets slip
* Dismal U.S. jobs data weigh
* Possible U.S. stimulus package supportive
* OPEC president says to cut output again in March if needed
(Updates throughout, changes dateline, pvs PERTH)
LONDON, Feb 9 (Reuters) - Oil slipped below $40 a barrel on
Monday as European stock markets open lower and worries over the
state of global demand dampened sentiment.
But most U.S. crude oil <CLc1> contracts and North Sea Brent
<LCOc1> remained within recent trading ranges, supported by
hopes that the United States would act swiftly to approve an
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 some support.
U.S. crude for March delivery <CLc1> fell 35 cents to $39.82
a barrel by 0905 GMT. London Brent <LCOc1> eased 46 cents to
$45.75.
Christopher Bellew, broker at Bache Commodities in London,
said both of the main oil futures contracts were trading within
well established ranges.
"The market rallied on Friday and now is giving back some of
those gains," Bellew said. "It is essentially range-bound."
European equities fell in early trade on Monday, with banks
and oils leading losses as investors awaited the approval of
Washington's massive stimulus plan and bank rescue package.
[]. Japanese stocks also fell [].
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. []
Later on Monday, the Democratic-led Senate, with the help of
a handful of Republicans, was due to vote to end debate on the
$827 billion plan to clear the way for its passage on Tuesday.
Oil prices fell on Friday after 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 prompting worries
of still weaker demand in the world's biggest oil consumer.
[]
The financial malaise, which first sprang from home loan
defaults in the United States, has swiftly spread to Europe and
Asia, pushing a string of industrialised nations into recession.
The economic slowdown has depressed 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. []
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. []
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. []
(Reporting by Christopher Johnson in London and Fayen Wong
in Perth; editing by Keiron Henderson)
