UPDATE 6-Oil rises towards $42 after OPEC supply pledge

                                
 * OPEC says willing to cut production further from March
                                
 * Impending U.S. stimulus package supportive
                                
 * Dismal U.S. jobs data still weighs on sentiment
                                
 (Recasts, updates prices, market activity; new dateline,
previously LONDON)
                                
 NEW YORK, Feb 9 (Reuters) - Oil climbed toward $42 a barrel
on Monday after OPEC said it was willing to cut oil output
further if needed to stabilize oil prices.
                                
 The market also drew support from optimism that the
administration of U.S. President Barack Obama would secure
Congressional passage this week for a giant U.S. economic
stimulus package.
                                
 U.S. crude for March delivery <CLc1> rose $1.43 cents to
$41.60 a barrel by 11:34 a.m. (1624 GMT). London Brent <LCOc1>
climbed $1.30 cents to $47.51.
                                
 "If we think we still need more action, I'm sure the
conference will take more action to stabilise the market,"
Abdullah al-Badri, secretary-general of the Organization of
Petroleum Exporting Countries, told reporters in London. He was
referring to OPEC's supply policy meeting on March 15 in
Vienna.
                                
 Badri also said the 12-member group appeared to be
implementing promises of production cuts more thoroughly than
expected by some in the oil market with 80 percent compliance.
                                
 OPEC has said it will cut oil supply by 4.2 million barrels
per day (bpd) from September's level in an attempt to bolster
oil prices that have fallen from a record high of almost $150 a
barrel last July.
                                
 Harry Tchilinguirian, oil analyst at BNP Paribas in London,
said the market was also looking ahead to the passage this week
of a massive economic stimulus package to try to revive the
U.S. economy.
                                
 STIMULUS
                                
 "The stimulus package is a supportive structural factor,"
he said. "It should begin to have an impact on the economy in
the second half of this year and is an underlying element
conditioning sentiment."
                                
 Top aides to President Obama on Sunday urged Democratic and
Republican lawmakers to set aside political differences and
quickly approve the stimulus package this week, as the world's
largest economy suffers from the worst financial crisis in 70
years. [ID:nN08458993]
                                
 Later on Monday, the Democratic-led Senate, with the help
of a handful of Republicans, was due to vote to end debate on
the $827 billion plan to clear the way for passage on Tuesday.
                                
 Oil prices fell on Friday after news of steep job cuts in
the United States. Nearly 600,000 jobs were slashed last month,
the most severe cut since December 1974, prompting worries
demand could weaken further in the world's biggest oil
consumer. [ID:nN06435445]
                                
 The financial malaise, which first sprang from home loan
defaults in the United States, has spread to Europe and Asia,
pushing a string of industrialised nations into recession.
                                
 Renewed violence in Nigeria also helped buoy oil prices.
Nigerian militants attacked a gas plant operated by Royal Dutch
Shell <RDSa.L> in the Niger Delta on Saturday and warned of
more attacks to come, but the army said it had repelled the
raid and killed three gunmen. [ID:nL7214715]
 (Reporting by Rebekah Kebede in New York, Christopher Johnson
in London, Fayen Wong in Perth; editing by James Jukwey, Keiron
Henderson and David Gregorio)