* S&P revises U.S. ratings outlook from stable to negative
* Saudi cuts output, says market is well-supplied
* Citigroup Q1 profit falls 32 pct
(Recasts, updates prices, adds S&P downgrade)
By Claire Milhench
LONDON, April 18 (Reuters) - Oil prices fell more than $2 a
barrel on Monday to under $122 a barrel after OPEC ministers
said high oil prices could place a major strain on consumer
countries, and S&P revised its U.S. outlook to negative.
Leading OPEC member Saudi Arabia on Sunday confirmed it had
cut output by more than 800,000 barrels per day (bpd) in March
because of weak demand. []
Saudi Oil Minister Ali al-Naimi said the economic recovery
remained patchy, while his Kuwaiti counterpart added that high
oil prices could form a significant economic burden for many
import-dependent countries. []
Brent crude <LCOc1> was down $1.50 cents at $121.95 a barrel
by 1350 GMT after earlier falling over $2 to an intraday low of
$121.36. U.S. crude <CLc1> fell $1.95 to $107.71, having traded
as low as $107.60 a barrel.
The oil market also took fright after ratings agency
Standard & Poor's said it was revising the outlook for the
credit-worthiness of the United States to negative from stable.
It said there is a risk policymakers may not reach agreement
on how to address the country's long-term fiscal problems.
[]
"The market has been focused on demand destruction over the
past week rather than the geopolitical risks in North Africa and
the Middle East and this should go some way to cementing that
view," said Paul Harris, head of natural resources risk
management at Bank of Ireland in Dublin.
Oil prices fell early last week on concerns that demand is
eroding under pressure from high prices, but rebounded on Friday
following encouraging U.S. economic data.
In Libya, forces loyal to Muammar Gaddafi bombarded Misrata
with rockets and artillery and pounded the insurgents' eastern
frontline outpost of Ajdabiyah, rebels said. []
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More on Middle East unrest: [] []
Interactive graphic http://link.reuters.com/puk87r
Graphic on recessions and the oil price:
http://r.reuters.com/vyx88r
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The oil market is still seeking a close replacement for very
high quality Libyan sweet crude oil lost due to the conflict in
the North African nation, OPEC Secretary General Abdullah
Al-Badri said on Monday. []
Unrest continues in Syria and Yemen. []
Markets are also focused on corporate earnings, looking for
signs of a stuttering recovery. Citigroup reported a 32 percent
fall in profit in the first quarter on weak revenues, putting
oil under further pressure []
Eurozone consumer confidence figures for April, which should
have come on Monday, have been delayed until April 19, the
European Commission said.
(Additional reporting by Francis Kan in Singapore and Alex
Lawler in London; editing by James Jukwey)
