* Firmer dollar, Greece woes weigh on mood * Gold, copper also fall * China's oil demand rose 19.4 pct in Feb (Updates prices, adds quote paragraph 4) By Alex Lawler LONDON, March 22 (Reuters) - Oil fell 2 percent to around $79 a barrel on Monday, declining for a third straight session, weighed down by a firmer dollar, worries over Greece's debt and ample oil supplies. The stronger dollar hit other commodities such as gold and copper. The euro reached a three-week low against the dollar, which rose broadly, making dollar denominated commodities more expensive for other currency holders. U.S. crude for April delivery CLc1, which expires later on Monday, lost $1.71 to $78.97 a barrel at 1340 GMT. Brent crude LCOc1 fell $1.58 to $78.30. "It's the general mood in commodity markets today, with not only oil under pressure, said Carsten Fritsch, analyst at Commerzbank. "The main driver is the rapid strengthening in the U.S. dollar, which puts immense pressure on commodities across the board." Oil in New York settled at $80.68 on Friday, which also marked two consecutive weeks of price falls. [ID:nN19132978]. This month, oil has rallied above $83 but not topped the 2010 high of $83.95 set in January. While inventories are falling in industrialised countries and global demand is expected to rise, supply remains ample. A Reuters poll last week showed the oil market will probably face oversupply of 150,000 barrels per day (bpd) this year. OPEC at a meeting last week kept its official output ceiling unchanged, but it did not stress additional compliance with production limits that the group is already exceeding by almost 2 million bpd. "We just have not seen enough fundamentals to justify a further increase in the price," said Toby Hassall of CWA Global Markets in Sydney. "We are still seeing oversupply in Europe and the U.S." As well as making oil more expensive for foreign currency holders, a stronger dollar also indicates investors are moving away from assets deemed to carry more risk, like commodities and equities. European leaders sent out conflicting signals at the weekend over aid to Greece, with Germany urging Athens to solve its debt problems alone and Italy backing EU support. EU leaders will meet on March 25-26. The latest indication of China's growing oil demand could offer support. Implied oil demand in the world's second-biggest energy user rose 19.4 percent in February over a year earlier. Commercial crude oil inventories rose 5.2 percent in February over January to 28.2 million tonnes, China OGP reported on Monday. [ID:nBJI002256] (Additional reporting by Seng Li Peng in Singapore; Editing by Anthony Barker)

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