* U.S. Treasury to woo private funds with toxic asset plan
* Dollar supports after biggest fall since 1985 last week
* Asian stocks up as U.S. bad debt plan rekindles hope
(Updates prices, adds details)
By Fayen Wong
PERTH, March 23 (Reuters) - Oil rose towards $53 a barrel
on Monday, continuing its fifth week of gains, bolstered by
expectations that the U.S. Treasury's efforts to stabilise the
ailing financial system could speed up a recovery of the U.S.
economy.
The U.S. Treasury Department said Secretary Timothy
Geithner will hold a briefing at 8:45 a.m. (1245 GMT) on Monday
to talk about wide-ranging efforts to stabilise the financial
system through pumping cash into faltering banks and other
attempts to increase lending.
U.S. light crude for May delivery <CLc1> rose 65 cents to
$52.72 a barrel by 0558 GMT, while London Brent crude rose 68
cents to $51.90.
"There are expectations that the U.S. Treasury will deliver
a plan that will bolster prospects for the financial sector and
that's probably helping crude this morning," said Toby Hassall,
head of research at Commodities Warrants Australia.
"There are also expectations that the U.S. dollar will fall
further this week and that is providing support for oil as well
as other commodities, including gold."
The United States on Monday offered generous financing for
private investors to help cleanse banks of up to $1 trillion in
toxic assets that are blocking lending and worsening a deep
U.S. recession. []
The announcement lifted Asian stocks on Monday, with
Japan's Nikkei at a one-month high. []
Weakness in the U.S. dollar also offered support to oil
prices. The dollar rebounded on Friday but still recorded its
biggest weekly slide since 1985 as the Federal Reserve's plans
to buy long-term government debt stoked fear about the erosion
of the U.S. currency. []
President Barack Obama said on Sunday the U.S. dollar is
still strong but warned that excessive borrowing and high
deficits could weaken Treasury bill demand. []
Crude has fallen nearly $100 from highs above $147 a barrel
last July, as the global economic crash has shrunk demand for
the fuel.
But OPEC's curbs on output by 4.2 million barrels per day
(bpd) and efforts by the U.S. government to revive the economy
have helped oil prices to stabilise at between $40-$50 a
barrel, after falling to levels below $35 last month.
Still, analysts cautioned that near-term demand for oil
remains weak and crude's recent rally may be limited.
The global economy is set to shrink by 1 to 2 percent this
year, World Bank President Robert Zoellick said on Saturday,
saying the depth of the slowdown was unprecedented since the
1930s Great Depression. []
In a further sign of weakening demand, crude imports into
China, the world's No. 2 oil consumer, fell 18 percent from a
year ago in February, customs data showed. []
Oil workers at Brazilian state-controlled energy firm
Petrobas <PETR4.SA><PBR.N> began a five-day strike late on
Sunday in an attempt to cut crude output in protest over job
cuts, pay and working conditions, a union leader said.
[]
(Editing by Ben Tan)
