* Japan economy shrinks most since 1974
* S. Korean exports fall by a third
* OPEC again cuts 2009 world oil demand forecast
* Obama to sign stimulus bill Tuesday in Denver
(Updates throughout, changes dateline, previous PERTH)
LONDON, Feb 16 (Reuters) - U.S. oil prices stayed above $37
a barrel on Monday, as bearish economic data from Asia slowed
the upward momentum after a sharp rally at the end of last week.
Japan's economy shrank in the last quarter by its most since
the first oil crisis in 1974, hit by an unprecedented slump in
exports, which is likely to lead to more calls for extra
stimulus steps to fight the deepening recession.
The impact of the recession is also being felt in South
Korea, where January exports dropped by a record 33.8 percent
from a year earlier, even worse than forecast. []
Energy demand in the world's largest oil consumer, the
United States, is already contracting, putting huge pressure on
oil prices.
U.S. light crude oil futures for March delivery <CLc1> were
up 7 cents at $37.58 a barrel by 0920 GMT in electronic trade,
after gaining $3.53 on Friday. The New York Mercantile Exchange
is closed for Presidents Day and will reopen on Tuesday.
London Brent crude <LCOc1> for April shed 1 cent to $44.80,
maintaining a premium to U.S. oil due to high stock levels at
the main U.S. storage hub in Cushing, Oklahoma.
Analysts see most oil prices, including North Sea Brent,
trapped within a fairly tight trading range, but say the nearby
U.S. futures contract is coming under pressure from high stocks.
VULNERABLE
"We continue to maintain that crude prices will be trapped
in a sideways band for the next several weeks," brokers MF
Global said in a note to clients. "Rallies above $50 look
vulnerable, as given the deteriorating global macro backdrop, we
do not think prices north of that level will be sustainable."
Oil's jump on Friday was largely boosted by renewed optimism
that a giant U.S. stimulus package could help pull the economy
out of a 14-month recession, while the gains were further
encouraged as traders booked profits by selling the spread
between front and second month futures contracts.
U.S. President Barack Obama on Saturday hailed congressional
approval of the $787 billion economic stimulus bill as a major
milestone in the country's economic recovery and the White House
said he would sign the legislation on Tuesday.
Obama's aides warned Americans on Sunday not to expect
instant miracles from the $787 billion economic stimulus bill he
will sign this week, but said it would help eventually.
Oil prices have tumbled from their peak above $147 a barrel
last year, as the economic downturn has spread to all regions of
the world, cutting energy consumption.
Analysts see downside risks for oil, as economies struggle
through their worst recession in decades.
World oil demand will contract more sharply than expected
this year due to the economic crisis, OPEC said on Friday, an
outlook that may bolster the case for further supply cuts when
the group next meets in March.
U.S. economic data due to be released on Tuesday include
manufacturing production in New York State and U.S. home builder
sentiment for February.
(Reporting by Christopher Johnson in London and Fayen Wong in
Perth; editing by Anthony Barker)
