* U.S. jobs data likely to reinforce economic gloom
* Saudi Arabia to deepen output cuts in February
(Recasts)
By Christopher Johnson
LONDON, Jan 9 (Reuters) - Oil prices slipped towards $41 a
barrel on Friday as economic gloom deepened ahead of data
expected to show a big jump in U.S. unemployment.
Non-farm payrolls figures, due at 1330 GMT, are likely to
show more than half a million Americans lost their jobs in
December, a Reuters poll showed, the highest monthly job losses
in 34 years. []
U.S. crude for February delivery <CLc1> was down 65 cents at
$41.05 a barrel by 1149 GMT, after climbing $1.00 to $42.70.
London Brent crude <LCOc1> was 43 cents lower at $44.24.
Crude fell 2.2 percent to settle at $41.70 on Thursday,
after a 12 percent slump on Wednesday, the biggest daily
percentage drop in more than seven years.
"Of course, we are getting used to negative economic news,
but this U.S. jobs data is likely to be very, very bad," said
Frank Schallenberger, head of commodity research at Landesbank
in Stuttgart.
"Short-term, oil is held within a fairly narrow range
between $40 and $45. I don't see $50 in the near future."
The market appeared to be largely ignoring evidence that oil
producers were cutting output in an attempt to support prices.
Top crude exporter Saudi Arabia is the latest member of the
Organization of the Petroleum Exporting Countries to show it is
cutting output in line with a deal agreed in December.
It will deepen its supply cuts in February from January to
at least three Asian crude buyers, industry sources said on
Friday. []
Earlier this week, Kuwait and Iran also told customers of
bigger supply curbs this month, after the cartel agreed its
biggest ever production cut in December in a bid to bolster
prices. []
One prop of the recent rally that had lifted oil prices
since the start of the year looked likely to be removed, after
Russia reached an agreement to deploy European Union monitors to
ensure the smooth flow of gas via Ukraine. []
The threat of widening supply disruptions in Europe from the
Russia-Ukraine gas row, as well as Israel's invasion of Gaza,
had boosted oil to a one-month high of $50.47 on Tuesday.
While the Gaza conflict does not directly threaten oil
supplies, Middle East unrest can bolster prices because
countries in the region pump about a third of the world's oil.
Oil has fallen more than $100 from a record peak of over
$147 a barrel in July, as the global economic downturn hits
demand for fuel. It settled at $33.87 a barrel on Dec. 19, the
lowest level since Feb. 10, 2004.
(Additional reporting by Jennifer Tan in Singapore; editing
by Sue Thomas)
