* OPEC says willing to cut production further from March
* Impending U.S. stimulus package supportive
* Dismal U.S. jobs data still weighs on sentiment
(Recasts, updates prices, market activity, adds byline)
By Rebekah Kebede
NEW YORK, Feb 9 (Reuters) - Oil prices rose slighty on
Monday after the Organization of Petroleum Exporting Countries
said it was willing to cut oil output further if needed to
counter slumping demand.
The market also drew support from optimism that the
administration of U.S. President Barack Obama would secure
Congressional passage this week for a giant U.S. economic
stimulus plan.
U.S. crude for March delivery <CLc1> rose 43 cents to
$40.60 a barrel by 12:45 p.m. (1745 GMT). London Brent <LCOc1>
climbed 54 cents to $46.75.
"The stimulus and OPEC talking tough, signs from Saudi
Arabia that they're going to cut production-- these are all
things that are adding to the bottom line right now," said Phil
Flynn, an analyst at Alaron Trading in Chicago.
Secretary-General Abdullah al-Badri reiterated OPEC's
willingness to cut oil production further to steady prices at
the group's next supply policy meeting on March 15 in Vienna.
"If we think we still need more action, I'm sure the
conference will take more action to stabilize the market," he
said.
Badri also said the 12-member group appeared to be
implementing promises of production cuts more thoroughly than
expected by some, with 80 percent compliance.
OPEC has said it will cut oil supply by 4.2 million barrels
per day (bpd) from September's level in an attempt to bolster
oil prices that have fallen from a record high of almost $150 a
barrel last July.
STIMULUS
Top aides to President Obama on Sunday urged Democratic and
Republican lawmakers to set aside political differences and
quickly approve the stimulus package this week, as the world's
largest economy suffers from the worst financial crisis in 70
years. []
"Basically the market knows that the stimulus package is
coming in one form or another, and last week when President
Obama spoke about it, we got a nice little rally, but it's
going to be more difficult to rally on that every day."
The Democratic-led Senate, with the help of a handful of
Republicans, was due to vote to end debate on the $827 billion
plan on Monday to clear the way for passage on Tuesday.
Crude prices were also lifted by a weaker dollar, which
slid on Monday as investors anticipated a financial rescue
package.[]
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. []
Despite Monday's gains, oil prices were limited by worries
that demand could weaken further in the U.S., the world's
biggest oil consumer.[]
Oil prices have tumbled from a record high above $147 per
barrel in July as the global economic downturn slashed demand
for fuel.
(Additional reporting by Christopher Johnson in London,
Fayen Wong in Perth; editing by James Jukwey, Keiron Henderson
and David Gregorio)
