* Focus on U.S. stimulus package
* U.S. to lay out plan to mop up bad mortgage assets
* U.S. crude supply seen up on low runs, high imports
(Updates throughout, previous SINGAPORE)
By Joe Brock
LONDON, Feb 10 (Reuters) - Oil hovered below $40 a barrel on
Tuesday as investors speculated over what impact the approval of
an $800 billion-plus stimulus package by the U.S. government
would have on the price of oil.
Doubts over whether a U.S. bank rescue plan, expected to be
revealed later on Tuesday, would be enough to stem the global
financial crisis weighed on sentiment, capped oil's gains.
U.S. light crude for March delivery <CLc1> fell 2 cents to
$39.54 a barrel by 0933 GMT. The contract settled down 61 cents
at $39.56 a barrel on Monday.
London Brent crude fell 7 cents to $45.95 a barrel,
maintaining its premium against U.S. prices.
"I think the market is expecting the U.S. stimulus package
to go through, which should be bullish for commodities but it's
anyone's guess at the moment," said Tony Machacek, at Bache
Commodities.
The U.S. stimulus bill -- a mixture of tax cuts and public
spending measures -- passed a key procedural hurdle in the U.S.
Senate on Monday, paving the way for the chamber to pass the
bill on Tuesday. []
President Barack Obama said only the government could rescue
the world's biggest economy from a "negative spiral," as
investors around the globe looked to the United States to lead
the way out of the global financial crisis. []
But worries over the impact of the U.S. stimulus package
lingered.
Dallas Federal Reserve President Bank Richard Fisher said on
Monday that he did not expect the U.S. economy to grow in 2009
and much hinged on the impact of the package that is being
debated by the U.S. congress. []
The global financial crisis, which has thrown a host of
major economies into a recession, has also slashed world fuel
demand and dragged oil prices from a record high of above $147 a
barrel in July.
On Monday, OPEC Secretary-General Abdullah al-Badri
reiterated the group's willingness to cut oil production further
to steady prices at the group's next supply policy meeting on
March 15 in Vienna [].
But Algerian energy minister Chakib Khelil said the cartel
would be under less pressure to cut output if oil stabilised
near the $40 a barrel level. []
Al-Badri said the 12-member group appeared to be
implementing production cuts more thoroughly than expected by
some, with 80 percent compliance.
A weekly national petroleum report from the U.S. American
Petroleum Institute as well as the U.S. Energy Information
Administration's monthly short-term energy outlook to be
released later on Tuesday will give further direction to prices,
analysts said.
A Reuters poll showed that U.S. crude inventories rose for
the seventh consecutive time last week, because of a drop in
refinery utilisation and higher imports. []
(Additional reporting by Fayen Wong in Singapore; Editing by
Peter Blackburn)
