* U.S. consumer spending falls in Dec.
* U.S. data show lower fuel demand in November
* No energy supply disrupted by UK labour action
* New car sales drop further in Spain, France
(Updates prices, adds quote)
By David Sheppard
LONDON, Feb 2 (Reuters) - Oil fell below $41 a barrel on
Monday as a deepening U.S. recession shrank demand in the
world's top fuel burner and evidence mounted of a global
downturn.
Growing concern over poor economic data also took a toll on
world equity markets and sent the euro to a two-month trough
against the dollar. U.S. consumers cut spending for a sixth
straight month in December and their incomes shrank.
U.S. light crude for March delivery <CLc1> fell 74 cents to
$40.49 a barrel by 1510 GMT, after gaining as much as 63 cents
in early trade.
London Brent crude <LCOc1> shed 94 cents to $44.94 a barrel.
"The economic data and consumer spending being down just
keep the demand problem in focus," said Dominick Chirichella of
Energy Management Institute.
A report from the U.S. Energy Information Administration on
Friday showed U.S. oil demand in November was 305,000 barrels
per day (bpd) less than previously estimated and was down 1.577
million bpd from a year earlier.
Slowing consumption has swollen fuel stocks and helped knock
more than $100 a barrel off the price of crude since its July
peak near $150.
Some analysts see oil holding above $40 in the near term.
"We'd probably need to see a big crude stock-build again in
the U.S. this week to move us below $40," said Andrey
Kryuchenkov, Vice President of Commodities at VTB Capital in
London.
Grim economic news also dominated Asia and Europe, where
Euro zone manufacturing shrank and factory prices tumbled at
their fastest rate in at least six years. []
Sales of new cars dropped further in Spain and France and in
South Korea, January exports contracted at a record pace.
Price support offered by refinery strike action on both
sides of the Atlantic also began to fall away as energy supplies
were not disrupted.
"The likelihood of a (U.S.) refinery strike is a lot less
than on Friday," said Chirichella.
United Steelworkers negotiators and oil company
representatives returned to the bargaining table on Sunday, a
day after telling thousands of U.S. refinery and chemical plant
workers to stay on the job as they try to hammer out a new
national contract. []
In Britain, energy supply was not impacted by workers at
nuclear, oil and gas plants who were protesting against the use
of foreign workers. []
Signs from OPEC that it might remove more supply on top of
record output curbs and an abrupt end to a ceasefire in
Nigeria's oil-rich Niger delta also supported prices.
OPEC Secretary General Abdullah al-Badri told Reuters on
Friday the producer group was willing to cut output further at
its meeting in March, adding to agreed cuts of 4.2 million bpd
since September to prop up prices [].
(Additional reporting by Peg Mackey in London, Robert Gibbons
in New York and Fayen Wong in Perth, editing by Anthony Barker)
