* Oil falls to a three-week intraday low of $77.07
* Poor risk appetite and demand concerns weigh
* Market to take cues from Chinese econ data, U.S. stocks
By Fayen Wong
PERTH, Jan 18 (Reuters) - Oil prices fell for the sixth
session to a three-week low of around $77 a barrel on Monday,
as poor risk appetite and renewed concerns about energy demand
prompted investors to sell down their positions.
A series of bearish news, such as the International Energy
Agency cutting its global 2010 oil demand growth view, a strong
U.S. dollar, poor quarterly results from JPMorgan Chase & Co
<JPM.N> and expectations for reduced heating demand in the
Northern Hemisphere, combined to cut oil prices by over 1.7
percent on Friday.
"The oil market is seeing a spillover effect from Friday.
The demand fundamentals remain weak and there also isn't going
to be any economic data out of the U.S. over the next couple of
days that can change the prevailing bearish views," said Ben
Westmore, a commodities analyst at the National Australia Bank.
U.S. crude for February delivery <CLc1> fell 81 cents to
$77.19 a barrel by 0144 GMT on Monday, after having fallen to
as low as $77.07 earlier.
London Brent crude <LCOc1> fell 71 cents to $76.40.
Crude oil prices have steadily fallen since striking a
15-month intraday high of $83.95 a barrel on Jan 11, dragged
down by weak U.S. economic data and fears of a sluggish rebound
in demand in the world's largest energy consumer.
Prices are now still 47 percent below its lifetime high of
more than $147 a barrel hit in July 2008.
"Oil prices are going to need a good dose of economic
optimism before it can rebound to the $80 levels again,"
Westmore said.
Asian stocks fell on Monday, with Japan's Nikkei average
<> declining 1.7 percent to come off its 15-month high and
South Korea's Kospi index <> opening down 0.33 percent, as
the deep fourth-quarter losses posted by JP Morgan raised
concerns about the health of other banks.
Cold weather across major oil consuming countries has done
little to boost demand, the International Energy Agency said on
Friday in a report that trimmed its global demand growth
forecast by 20,000 barrels per day. []
On OPEC rumblings, Qatar's oil minister said on Sunday the
market is "well-supplied", while Saudi Arabia's deputy oil
minister reiterated that an oil price of between $70 to $80 a
barrel was reasonable, adding that it was too early to predict
the outcome of OPEC's next meeting in March.
[][]
Separately, six major powers discussed on Saturday
prospects of further sanctions against Iran over its nuclear
program, but China made clear it opposed more punitive action
at the moment, participants in the meeting said.
[]
Traders say a raft of Chinese data this week, including
fourth-quarter gross domestic product, retail sales and
industrial production for December, could offer a lift to crude
oil prices. <ECONCN>
Investors will also watch U.S. earnings for cues with IBM
<IBM.N> and Goldman Sachs <GS.N> due to report this week.
[].
(Reporting by Fayen Wong; Editing by Himani Sarkar)
