* Market looks to U.S. Fed statement on economy
* U.S. bank plan, China monetary policy weigh
* Equities dip in Asia, Europe
(Updates prices, adds details, previous dateline SINGAPORE)
By David Sheppard
LONDON, Jan 25 (Reuters) - Oil prices fell on Monday,
approaching one-month lows near $74 a barrel, on continued
market unease over possible tighter Chinese monetary policy and
a U.S. proposal to toughen bank trading rules.
Prices have fallen by almost $10 a barrel over the last two
weeks since hitting a 15-month peak of $83.95 on January 11.
Wall Street stocks capped their worst three-day slide in 10
months on Friday on fears President Barack Obama's plan to limit
risk-taking by banks would undermine profits.
"At the end of last week, commodities were pressured after
President Obama announced plans to curb risk taking on Wall
Street by limiting trading activity of financial institutions
and banning commercial banks from proprietary activity," JBC
Energy analyst David Wech said.
"Besides raising concerns that the new ruling could threaten
the profitability of the financial sector, Obama's plan also
raised worries concerning liquidity in commodity markets."
U.S. crude for March delivery <CLc1> declined 18 cents to
$74.36 a barrel by 0950 GMT. The contract fell $1.54 to settle
at $74.54 a barrel on Friday, the lowest settlement since Dec.
22, after trading as low as $74.01.
London ICE Brent <LCOc1> rose 13 cents to $72.95.
Oil prices have broken below the 100-day moving average of
$75.20, a key indicator of market sentiment. Demand for oil
remains relatively weak in the wake of the financial crisis.
Analysts said sentiment during the week would be shaped by
the latest U.S. Federal Reserve comments on interest rates due
on Wednesday as well as U.S. existing home sales data and gross
domestic product for the fourth quarter.
China, the fastest growing oil market and the world's second
largest energy consumer, is also in focus, with signs Beijing
could move to tighten monetary policy to rein in its booming
economy. []
Asian and European equity markets slipped on Monday.
LARGER CORRECTION?
Having fallen in seven out of eight trading sessions since
Jan 11, oil prices could see some trend-line support near
current levels, analysts said. More bearish news could push the
price toward a low of $68.59 -- last seen in late December.
Separately, Mexico closed its Dos Bocas oil terminal on
Sunday due to bad weather, the government said. Almost all of
Mexico's crude oil exports are shipped to refineries on the Gulf
Coast of the United States. []
U.S. stocks could also see choppy trading this week with the
latest batch of earnings and uncertainty over Ben Bernanke's
Senate confirmation for another term as Federal Reserve
Chairman. []
Money managers boosted their net long crude oil futures
position on the New York Mercantile Exchange in the week through
Jan. 19, the Commodity Futures Trading Commission (CFTC) said on
Friday, but some analysts cautioned this could actually lead to
lower prices. []
"The latest CFTC net non-commercial position reports reveal
that there has hardly been any retrenchment in length this past
week in crude oil or gasoline, implying that further selling
could easily come our way if many of the 'stale' longs start
heading for the sidelines," MF Global analyst Edward Meir said.
(Additional reporting by Fayen Wong in Perth; Editing by Amanda
Cooper)
