UPDATE 1-Oil slides below $37, demand worries linger

                                
 * OECD data points to deep slowdown in G7 economies
                                
 * Russia says to resume gas flows on Tuesday
                                
 * Dollar near 1-month high vs euro as ECB seen cutting
rates
 (Updates prices, adds China trade data, dollar movements)
                                
 By Fayen Wong
                                
 PERTH, Jan 13 (Reuters) - Oil fell to a more than two-week
low below $37 a barrel on Tuesday, extending a near 8 percent
overnight loss, as investors grew more pessimistic about energy
demand on indications the world economy will slow down sharply.
                                
 Worsening recessionary signs forced investors to flee risky
assets such as commodities and take refuge in the safe haven of
U.S. Treasury bonds on Monday [US/], while Asian shares fell on
concerns about the United States sinking further into
recession.
                                
 U.S. light crude for February delivery <CLc1> fell 93 cents
to $36.66 a barrel by 0557 GMT, the weakest level since Dec.
26. London Brent crude <LCOc1> fell 40 cents to $42.51.
                                
 "It's generally a very negative tone out there and there is
a lot of pessimism on oil demand in the near term," Toby
Hassall, chief analyst at Commodity Warrants Australia in
Sydney.
                                
 Slumping fuel demand due to the global recession sent oil
prices down 54 percent last year, and crude is now off more
than $100 from its record peak above $147 a barrel last July.
                                
 Top central bankers said on Monday the global economy will
slow down sharply in 2009 as industrialised economies
contracted [nLC292826], while latest data from the Organisation
for Economic Cooperation and Development (OECD) showed that the
world's major and emerging economies were heading towards a
"deep slowdown". [ID:nLC293995]
                                
 Poor trade figures from China, the No. 2 energy consumer,
added to the gloom.
                                
 Latest government data showed China's exports and imports
fell in December for the second month in a row, underlining how
badly the global financial crisis was sapping the strength of
the world's fourth-largest economy. [ID:nPEK141749]
                                
 Analysts said the resumption of Russian gas supplies to
Europe, a key factor which has helped oil's rally at the start
of the year, was dampening crude oil's rise.
                                
 Russian Prime Minister Vladimir Putin ordered the
resumption of gas supplies via Ukraine to Europe on Tuesday
after signing a deal with Kiev on monitoring gas flows, six
days after a Russian-Ukrainian price row cut deliveries in
freezing temperatures. [ID:nLB99367]
                                
 A rally by the dollar against the euro also put downward
pressure on oil prices, analysts said. The U.S. dollar extended
gains to reach a one-month high versus the euro, amid
expectations the European Central Bank will cut interest rates
this week. [USD/]
                                
 Oil prices are falling despite news that OPEC members may
cut production further and that heating oil demand in top
consumer the United States will climb above average this week
due to cold weather.
                                
 In yet another sign that energy consumption in United
States had slumped, a preliminary Reuters poll ahead of
Wednesday's U.S. government inventory data forecast crude
stocks to rise for the third consecutive session by 2.2 million
barrels last week, with stocks of refined product also
increasing. [EIA/S]
 (Editing by Ben Tan)