* Signals of possible OPEC supply cut at March 15 meeting
* "All options on the table," OPEC secretary general says
* OPEC to slash 2009 demand forecast by 1 million bpd
(Updates prices)
By Christopher Johnson
LONDON, March 9 (Reuters) - Oil rose more than 1 percent to
above $46 a barrel on Monday on speculation OPEC may agree to
cut production further at a meeting this weekend.
OPEC Secretary General Abdullah al-Badri said on Monday the
12-member producer group would consider reducing output again at
its March 15 meeting as it tries to counter downward pressure on
oil prices from falling demand.
"All options are on the table," he told reporters in Qatar
when asked if OPEC, which pumps more than a third of the world's
oil, would announce another reduction in supply at its meeting
in Vienna. []
The severe downturn in the global economy over the last year
has reduced world energy consumption sharply and oil prices have
tumbled from a peak of almost $150 a barrel in July.
U.S. crude <CLc1> for April delivery was up $1.10 at $46.62
per barrel by 1011 GMT, after hitting an earlier high of $47.03.
London Brent crude <LCOc1> was down 5 cents at $44.80 a
barrel. Brent closed at a discount to U.S. light crude oil
futures on Friday, the first such discount since Dec. 11.
The outcome of OPEC's meeting on Sunday seemed to be up in
the air, analysts and traders said, with many oil producers
waiting before pronouncing on output policy.
Some analysts expect a cut of around 1 million barrels per
day (bpd) in OPEC production but others say such a cut would be
difficult and painful to implement.
"I think they will seek better compliance with existing
quotas," said Christopher Bellew, oil broker at Bache
Commodities in London. "My feeling is that OPEC is able to
prevent further price weakness but until the over-hang of oil
stocks begins to be eroded, they will struggle to raise prices."
OIL DEMAND FALLING
OPEC has already promised to cut oil production by a total
of 4.2 million bpd from the production levels seen in September
and Reuters surveys suggest the group has come close to meeting
that pledge with compliance of more than 80 percent.
Badri said earlier on Monday OPEC would slash its 2009 oil
demand forecast by 1 million bpd because of the global economic
slowdown. He said that although the oil price was not really
acceptable to the producer group, it was not as bad as it could
be, given the state of the world economy. []
He said on Friday 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. []
In a sign some oil investors may be expecting OPEC to
further cut output at its 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. []
Open interest positions remained bulked at the $50 and $55
call options, with more at $55 than the previous week.
Still, analysts said the economic outlook would continue to
cast a pall over oil prices.
Japan swung to its first current account deficit in 13 years
in January, as exports collapsed, while a key U.S. policymaker
said a coordinated global effort was needed to boost demand and
drag the world out of recession.
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. []
Analysts said the move by the world's fourth-largest oil
exporter could offer some support to oil prices.
Tehran has sufficiently mastered nuclear technology to be
able to produce a bomb if it chooses, Israel's military
intelligence chief was quoted as saying on Sunday.
[]
(Additional reporting by Fayen Wong in Perth; editing by
Anthony Barker)
