UPDATE 1-Oil gains over 2 pct to near $47 on OPEC, weak dollar

                                
 * Signals of possible OPEC supply cut at March 15 meeting
                                
 * Dollar weakens, lends support to oil
                                
 By Fayen Wong
                                
 PERTH, March 9 (Reuters) - Oil rose over 2 percent to near
$47 a barrel on Monday, extending the previous session's gains
of over 4 percent, thanks to a weaker U.S. dollar and optimism
that OPEC would cut output again at this month's meeting.
                                
 U.S. crude <CLc1> for April delivery rose $1.21 to $46.73 a
barrel at 0010 GMT, adding to Friday's gains of $1.91.
                                
 London Brent crude <LCOc1> rose 58 cents $45.43 a barrel.
It was the first time since Dec. 11, 2008 that NYMEX crude has
gained a premium over Brent at the settlement.
                                
 "The U.S. dollar has moved lower a little bit this morning
and we are getting closer to the OPEC meeting on March 15, so I
guess those factors are offering support," said David Moore, an
analyst at the Commonwealth Bank of Australia.
                                
 The dollar slid lower versus the euro on Monday, adding to
the last session's decline, as investors locked in gains and
pared back safe-haven trades on the greenback. [USD/]
                                
 Further encouraging oil's gains were comments from OPEC's
secretary general, who said on Friday that low oil prices could
provide economic stimulus in the short term, but at the cost of
a supply shortfall in future due to low investment
[ID:nL6945788].
                                
 OPEC member Venezuela also said it would propose another
output cut if needed as the cartel prepares to meet on March
15, echoing comments from some other members. [ID:nN06405920]
                                
 The group has already agreed to cut production by 4.2
million barrels per day since September, and a Reuters survey
found that members have met 81 percent of their output
reductions as of last month.
                                
 In a sign that oil investors were banking on OPEC to
further cut output at this month's meeting, there were fewer
open interest positions at the $25, $30 and $35 put options on
the NYMEX April crude oil contract versus the previous week,
according to Reuters data on Friday. [ID:nN06610088]
                                
 Open interest positions remained bulked at the $50 and $55
call options, with more at $55 than the previous week.
                                
 Renewed threats from Iran, the world's fourth-largest oil
exporters, could also have offered support to prices, analysts
said.
                                
 Iran has test-fired a new air-to-surface missile, Iranian
media reported on Sunday, in the Islamic Republic's latest
display of its military capability [ID:nL8691412].
                                
 Tehran has sufficiently mastered nuclear technology to be
able to produce a bomb if it choose, Israel's military
intelligence chief was quoted as saying on Sunday.
[ID:nL8724762]
                                
 Crude oil speculators on the New York Mercantile Exchange
shifted to a net short position in the week to March 3,
according to data from the U.S. Commodity Futures Trading
Commission released on Friday. [ID:nN20297303]
  (Reporting by Fayen Wong; Editing by Valerie Lee)