NYMEX crude extends decline, hovers above $88

SYDNEY, Feb 4 (Reuters) - U.S. crude futures fell on
Monday, extending the previous session's decline, as fresh
signs of weakening U.S. economic growth heightened concerns a
recession would cut into oil demand in the world's largest
energy consumer.

* NYMEX crude for March delivery CLc1 fell 36 cents to
$88.60 a barrel in Globex electronic trading by 2309 GMT. Oil
lost $2.79 to settle at $88.96 a barrel on Friday, after weak
U.S. payrolls data overshadowed OPEC's decision to maintain its
output cuts.

* OPEC's output policy decision in March will depend on how
much crude oil stocks have been drawn down during the winter,
influential Saudi Oil Minister Ali al-Naimi told Al Arabiya
Television on Saturday. See: [ID:nL02242085]

Naimi said predictions of output decisions at the OPEC
meeting in March were premature, but inventories were currently
at the low end of the five-year average range.

* OPEC on Friday kept oil supplies unchanged and price
hawks in the cartel said it may need to curb output in March to
defend prices against a drop in demand should the United States
fall into recession [ID:nL01207762].

* Crude speculators on the New York Mercantile Exchange cut
net long positions last week as U.S. economic concerns
pressured oil prices, according to data from the Commodity
Futures Trading Commission released Friday [nN01454981].

Net crude long positions fell to 29,845 in the week to Jan.
29, down from 37,142 in the previous week.

* U.S. President George W. Bush said on Friday there were
serious signs that the economy of the world's biggest oil
consumer was weakening. The comments came after a report from
the Labour Department showed U.S. employers cut 17,000 jobs in
January, the first decline in 4-½ years, stoking fears of a
recession. [ID:nL01825279]
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Oil prices as of 2309 GMT
Contract Mnth Price Change Day ago pct MA-20*
NYMEX Contracts
US Crude MAR8 $88.60 -0.36 -$2.79 -3.04% $92.08
Heat Oil MAR8 244.29 -0.60 -8.02 -3.17% 253.89
RBOB MAR8 228.25 -0.09 -7.38 -3.13% 233.87
Natgas MAR8 $7.625 -0.115 -$0.334 -4.14% $8.002
ICE Contracts
Brent MAR8 -- +0.00 -$2.77 -3.00% $90.97
Gasoil FEB8 -- +0.00 +$3.25 +0.41% $800.78
Note: U.S. heating oil and RBOB gasoline contracts listed in
cents per gallon.
* = 20-day moving average for continuation month.
(Reporting by Fayen Wong)