NYMEX-Crude down on demand concern, despite cold

NEW YORK, Jan 12 (Reuters) - U.S. crude oil futures fell
more than 6 percent on Monday as concerns about slowing demand
in a weakening economy kept pressure on oil markets, despite
cold weather and OPEC cuts.

"The macroeconomic factors and concern about demand remain
in focus," said Phil Flynn, analyst at Alaron Trading in
Chicago. "But look at what the market is ignoring: OPEC cuts
and the Saudi's intent to cut more, the coldest weather this
year. That's really indicative of the state of oil demand."

Oil markets remained wary about pressure on demand after
data released last week showed the U.S. unemployment rate rose
in December to the highest level in 16 years.

Adding to the pressure was an agreement signed by Russia
and Ukraine concerning their ongoing energy dispute.

PRICES

* On the New York Mercantile Exchange at 12:24 p.m. EST
(1724 GMT), February crude CLG9 was down $2.75, or 6.74
percent, at $38.08 per barrel, trading from $37.60 to $40.80.

The spread between front-month February and March widened
to more than $5.

* In London, February Brent LCOG9 crude fell $1.81, or
4.07 percent, to $42.61 a barrel, trading from $42.12 to
$44.70. The February contract expires on Thursday.

* NYMEX February heating oil HOG9 fell 3.03 cents, or
2.04 percent, to $1.4574 a gallon, trading from $1.4402 to
$1.5070.

* NYMEX February RBOB RBG9 fell 3.00 cents, or 2.7
percent, to $1.0812 per gallon, trading from $1.0650 to
$1.1152, just below resistance charted at $1.1156.

* The Feb/Feb RBOB crack spread <0#RB-CL=R> was at $7.14.
It ended at $5.84 on Friday. The Feb/Feb heating oil crack
spread <0#CL-HO=R> was at $22.97, after ending at $21.65 on
Friday.

* The spread between the current front month and the
five-year forward crude contract CLc61 was at $35.96, based
on Friday's February 2014 contract settlement at $74.04. The
spread ended Friday at $33.21.

TECHNICALS

NYMEX crude 10-day/20-day moving average: $43.10/$41.37

Technical support/resistance: NYMEX crude: $36.50/$41.50

NYMEX heating oil: $1.40/$1.60

NYMEX RBOB: $1.0594/1.1156

MARKET NEWS

* Equities kicked off the week on a down note and the euro
fell. [MKTS/GLOB]

* Russia and Ukraine signed a deal that could get Russian
natural gas flowing again via Ukraine to Europe. [ID:nLB99367]

* Saudi Arabia plans to cut output and bring its production
as much as 300,000 barrels per day below its agreed OPEC
target. according to industry sources on Sunday.
[ID:nLB708600]

* U.S. bank Goldman Sachs said in an energy report: "the
ongoing market surplus will likely continue to drive
inventories higher, putting pressure on prices towards our $30
per barrel target for Q1 2009." [ID:nLC310224]

* U.S. heating demand this week expected to average 7.7
percent above normal, the National Weather Service said.
Heating oil demand is expected to be about 13.7 percent above
normal this week. [ID:nN12314387]

* U.S. Northeast temperatures expected to be below normal
in the six-to-10-day forecast from private forecaster DTN
Meteorlogix. [ID:nDTN625]

* OPEC could decide to reduce output again at its meeting
in March, if crude prices fall further, Iran's OPEC
representative was quoted as saying on Sunday. [ID:nDAH141249]
(Reporting by Robert Gibbons; Editing by Walter Bagley)