UPDATE 2-Oil steadies below $44, near lowest in almost 4 yrs

                                
 * Oil below $44, near lowest in nearly 4 years on weak data
                                
 * Market eyes $40 level as slowdown hurts demand
                                
 * OPEC expected to cut by significant amount on Dec. 17
 (Updates prices in paragraphs 3 and 4, adds steepest weekly
decline since 2003)
                                
 By Maryelle Demongeot
                                
 SINGAPORE, Dec 5 (Reuters) - Oil was steady below $44 on
Friday, near its lowest level in almost four years, with eyes
turning to the psychologically important $40 level as a
widening economic slowdown gnaws into oil demand.
                                
 Prices have lost nearly 20 percent from their settlement a
week ago, and are on course for their steepest weekly decline
since March 2003, following the release of weak U.S. economic
data, with lower retail sales and a 26-year high in jobless
benefits rolls the latest to add pressure to prices.
                                
 U.S. light crude for January delivery <CLc1> rose 9 cents
to $43.76 a barrel, having lost more than 6 percent on Thursday
to settle at $43.67, the lowest since Jan.5, 2005.
                                
 London Brent crude <LCOc1> rose 3 cents to $42.31.
                                
 "$40 is a very important psychological level," said Tetsu
Emori, fund manager at Astmax Co Ltd. "We first hit $40 in 2004
and prices then started accelerating up from there. We still
have to find where the bottom line is for prices."
                                
 The number of U.S. workers collecting jobless benefits hit
a 26-year high last month, data showed on Thursday, and may
head higher as a growing economic slump forces a broad range of
firms to cut jobs. [ID:nN04438189]
                                
 U.S. and European companies announced further job cuts,
with U.S. phone company AT&T Inc <T.N> saying it would
eliminate 12,000 jobs, while chemical maker DuPont Co <DD.N>
planned to drop 2,500.
                                
 Leading U.S. retailers also reported dismal November sales
on Thursday. Totting up the results, the International Council
of Shopping Centers said sales fell by a record 2.7 percent
compared to the same period last year. [ID:nN04382474]
                                
 To try and ginger up their feeble economies, European
central banks cut interest rates on Thursday.
                                
 Sweden's central bank cut by a record 175 basis points, the
European Central Bank cut by 75 points and the Bank of England
cut by 100 points. [ID:nHKG108699]
                                
 The price fall to nearly four-year lows has prompted OPEC
members to call for increasingly strong action when the
Organization of the Petroleum Exporting Countries meets next,
on Dec. 17 in Algeria. [ID:nL3531815]
                                
 OPEC President Chakib Khelil told Algerian state television
on Thursday that the oil-producing cartel should cut oil output
by a significant amount at the meeting if prices remain at
their current level. [ID:nAHM466378]
                                
 But analysts say another OPEC cut, the third since
September, would need to be drastic to provoke a price
reaction.
                                
 "Cumulatively, OPEC is behind the curve by 4-5 million
barrels per day (bpd). They really need to cut by 2.5 to 3
million barrels to have any impact on prices at the next
meeting. Less than 1.5 milion will mean another sell off,"
Edward Meir, commodities analyst at MF Global said.
                                
 Emori said a cut of at least 2 million bpd at the next
meeting would be needed to prevent further falls in prices.
                                
 "The market has not been really reacting to the first
cuts," Emori said.
 (Additional reporting by Nick Trevethan; Editing by Clarence
Fernandez)