NYMEX-Crude volatile, dips on demand, economy woes

NEW YORK, Dec 23 (Reuters) - U.S. crude oil futures fell on
Tuesday in thin, pre-holiday trading as concerns about falling
demand in a weak economy continued to weigh on oil prices and
pushed front-month February below $38 a barrel intraday.

"It is hard to construct a scenario that produces much
higher prices with volume limited to year-end activity, and
data expected to show a worsening economic picture," John
Kilduff, senior vice president at MF Global, said in a report.

Trading is expected to continue to be thin ahead of
Thursday's Christmas break. The NYMEX will close early at 1:30
p.m. EST (1830 GMT) on Wednesday , but electronic trading will
continue to 5:15 p.m. EST (2215 GMT) and restart on Thursday at
6:00 p.m. EST (2300 GMT).

PRICES

* On the New York Mercantile Exchange at 1:17 p.m. EST
(1817 GMT), February crude CLG9 was down 80 cents, or 2.0
percent, at $39.11 a barrel, trading from $37.79, a contract
low, to $40.65.

* In London, February Brent LCOG9 crude fell 68 cents, or
1.64 percent, to $40.77 a barrel, trading from $39.20 to
$42.02.

* NYMEX January RBOB RBF9 fell 2.16 cents, or 2.44
percent, to 86.46 cents a gallon, trading from 82.10 cents to
90.75 cents.

* NYMEX January heating oil HOF9 edged up 0.55 cent, or
0.41 percent, to $1.3470 a gallon, trading from $1.3012 to
$1.36.

* The Feb/Feb RBOB crack spread <0#RB-CL=R> was at minus
$1.37 a barrel. It ended Monday at minus 93 cents. The Feb/Feb
heating oil crack spread <0#CL-HO=R> was at $17.89, after
ending Monday at $17.28.

* The spread between the current front month and the
five-year forward February crude contract CLc61 was at
$28.94, based on the February 2014 contract's Monday settlement
at $68.05. The spread ended Monday at $28.14.

TECHNICALS

NYMEX crude 10-day/20-day moving average: $41.55/$44.42

Technical support/resistance: NYMEX crude: $39.35/$50.00

NYMEX heating oil: $1.25/$1.45

NYMEX RBOB: 78.00 cents/$1.01

For a report on technicals click [ID:nLN442947]

MARKET NEWS

* The dollar edged up against most major currencies as
year-end demand for the greenback blunted another round of grim
economic data suggesting a prolonged U.S. recession. [USD/]

* The U.S. economy shrank at a 0.5 percent annual pace in
the third quarter, government data showed. [ID:nN22501597]

* OPEC could decide in mid-January to hold an extraordinary
meeting before March if it sees that global oil prices continue
to slide, OPEC's President Chakib Khelil said. [ID:nLN490268]

* OPEC expects Russia to contribute to output cuts rather
then simply benefit from OPEC's actions, Khelil told Reuters on
Tuesday. [ID:nLN480570]

* Iraq's crude exports from the southern Basra terminal
have fallen by 456,000 barrels per day over the past two days,
a shipping agent said on Tuesday. [ID:nLN433782]

* The U.S. Energy Information Administration will release
oil inventory data at 1535 GMT on Wednesday and natural gas
storage data at noon, a day early due to Thursday's holiday.

* The EIA report is expected to show crude oil and refined
products supplies edged up last week. [EIA/S]
(Reporting by Robert Gibbons)