* Brent dips below $120 for first time since early April
* Euro zone debt concerns weigh
* Goldman profit down but commods trade helps beat f'casts
* OPEC official says oil will not go below $100 this year
(Updates prices, adds Goldman results)
By Jessica Donati and Caroline Copley
LONDON, April 19 (Reuters) - Brent crude oil futures fell
below $120 on Tuesday for the first time in two weeks, pressured
by concern over the economic outlook and the risk that high
prices could erode demand.
By 1318 GMT, Brent crude <LCOc1> was trading $2.20 lower at
$119.41 a barrel. U.S. crude <CLc1> for May, which expires later
on Tuesday, fell $1.16 to $105.96.
Expectations that Greece would be forced to restructure its
debt added to a bleak economic picture on Tuesday, a day after
ratings agency S&P cut its outlook for U.S. credit.
[]
"There's still a few worries in Europe, yesterday's
downgrading of the U.S didn't really help and I think we're
going to have to look at tomorrow's energy figures to give us a
bit more impetus," said Rob Montefusco at Sucden Financial.
"Events in the Middle East seem to be shoring up. We've had
rhetoric from the Saudis that the markets are well supplied, and
they're not going to be changing any quotas coming up," he
noted.
Oil prices fell despite Goldman Sachs <GS.N>, the biggest
U.S. investment bank, beating earnings forecasts with results
that while hurt by a fall in bond trading showed a surge in its
commodities trading. [] []
OPEC
OPEC Secretary General Abdullah al-Badri, speaking at an oil
and gas trade fair in Tehran, said he did not expect oil to fall
below $100 this year, even though there was no shortage in the
market.
He reiterated OPEC's call on consumer nations to revise
their tax systems to address what he called "exceptional
circumstances," so as to lessen the burden of high prices.
[]
The Organization of the Petroleum Exporting Countries (OPEC)
has so far declined to take any formal action to cool oil's
rally. Underlining that stance, Iran's oil minister said on
Tuesday any increase in output would not bring down prices.
[]
Top world exporter Saudi Arabia said over the weekend it had
cut oil production by 800,000 barrels per day (bpd) in March,
returning output to December levels, because of weak demand.
ECONOMY CONCERNS
In Europe, financial markets are increasingly convinced
Greece will have to renegotiate the terms of its public debt,
recognising that its economy cannot grow fast enough to service
a burden that is set to swell to 160 percent of national output.
Concerns about how China's attempts to slow economic growth
could impact oil demand, as well as high crude inventories in
the United States were also pressuring oil prices.
Later on Tuesday, the Americam Petroleum Institute will
release its weekly oil data at 2030 GMT. []
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Sovereign credit risk graphic: http://r.reuters.com/dys98r
S&P cuts U.S. credit outlook: http://r.reuters.com/cys98r
More on Middle East unrest: [] []
Libya Graphics http://link.reuters.com/neg68r
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Unrest in the Middle East remained a potential threat to
supply as fighting escalated in Syria on Tuesday, while tension
in Bahrain continued to require the presence of Saudi and UAE
forces there. [] []
In Libya, which pumped 1.6 million bpd or almost 2 percent
of world supply before the conflict, oil trade remains at a
virtual standstill. []
"The tension does not seem to be getting any better," said
John Vautrain of consulting firm Purvin & Gertz. "And we've now
got some growing tension between Iran and Saudi Arabia. Brent
still could go up in the next week or two."
(Additional reporting by Ikuko Kurahone; editing by Alex Lawler
and Jason Neely)
