* OECD data points to deep slowdown in G7 economies
* Russia restarts gas pumping to Europe through Ukraine
* Dollar hits 1-month high vs euro as ECB seen cutting rates
(Updates throughout, previous PERTH)
By David Sheppard
LONDON, Jan 13 (Reuters) - Oil fell towards $36 a barrel on
Tuesday to its lowest level in three weeks as further signs the
world economy was slowing sharply dampened demand expectations.
Worsening recessionary signals saw investors flee risky
assets such as commodities for U.S. Treasury bonds on Monday,
while European shares fell for a fifth session on Tuesday as
expectations mounted for poor results in this reporting season.
U.S. light crude for February delivery <CLc1> fell $1.15 to
$36.44 a barrel by 0909 GMT. Prices have fallen by almost $15 in
the past week, touching a low of $36.10 a barrel early Tuesday.
London Brent crude <LCOc1> fell 72 cents to $42.19 a barrel.
"The big drag on energy continues to be the growing impact
of the economic recession on global energy consumption," said MF
Global analyst Edward Meir in a note.
"If anything, far from stabilizing, things seems to be
getting worse on the macro front by the day, as the numbers we
are seeing coming from a variety of countries are all growing in
terms of magnitude."
Slumping fuel demand due to the global slowdown sent oil
prices down 54 percent last year, and crude is now off more than
$110 from its record peak above $147 a barrel last July.
Top central bankers said on Monday the global economy will
slow markedly in 2009 as industrialised economies contracted
[], while the 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". []
"LOT OF PESSIMISM"
Analysts said the resumption of Russian gas supplies to
Europe -- whose disruption helped oil rally back to $50 a barrel
at the start of the year -- was pressuring prices further.
Russia started pumping gas to Europe through Ukraine on
Tuesday for the first time since a contract dispute halted
supplies to many European countries nearly a week ago.
"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.
A rally by the dollar against the euro also put downward
pressure on oil and other dollar-priced commodities, analysts
said. The U.S. dollar hit a one-month high against the euro amid
expectations the European Central Bank will cut interest rates
this week. []
Oil prices are falling despite news that OPEC members may
cut output further and that heating oil demand in top consumer
the U.S. will climb above average this week due to cold weather.
In yet another sign that energy consumption in the U.S. is
falling, a preliminary Reuters poll ahead of Wednesday's U.S.
government inventory report, forecast crude stocks rose by 2.2
million barrels last week, third straight week of gains. []
Crude oil stock levels at Cushing, Oklahoma, delivery point
for the New York Mercantile Exchange crude contract, are at
record levels, and may soon start to test capacity at the hub.
(Additional reporting by Fayen Wong in Perth and Chua Baizhen
in Singapore; Editing by James Jukwey)
