RTRS: UPDATE 6-Oil slides over $2 on economic gloom, dollar gains
* Dollar gains on Europe worries pressure oil
* Obama faces uphill fight in passing jobs package
* Tropical storm Nate could become hurricane on Friday
* Brent, U.S. crude down over $2 (Updates throughout)
By Simon Falush
LONDON, Sept 9 (Reuters) - Oil fell sharply on Friday, hit by gloom surrounding prospects for the global economy and by dollar gains, as worries about the euro zone debt crisis came to the fore once again.
Brent for October delivery LCOc1 was down $2.14 cents at $112.41 by 1326 GMT.
U.S. crude oil CLc1 fell $2.14 cents to $86.91 a barrel.
Sources said ECB Executive Board Member Juergen Stark will step down from his post because of a conflict over the central bank's controversial bond-buying programme. [ID:ID:nB4E7K6015]
Meanwhile the head of Ireland's debt management agency said there are still big problems facing European banks. This contributed to a fall in the euro to its lowest since mid-March.
Oil, priced in dollars, falls as the U.S. currency appreciates as it becomes less affordable for holders of other currencies.
Other commodities like copper and risk sensitive equities also fell sharply as investors once again focused on global economic worries.
U.S. President Barack Obama's proposed $447 billion package of tax cuts and spending plans aimed at boosting growth and job creation failed to restore confidence to jittery markets.
"There's been no good news on the fiscal and economic outlook, with the OECD lowering forecasts for growth and the IMF warning of global stagnation and this does not augur well for oil demand," said Michael Hewson, analyst at CMC markets.
Economic policymakers had to act with "conviction and urgency" in supporting a faltering global economy, International Monetary Fund chief Christine Lagarde said, giving her blessing to further quantitative easing.
The outlook for economic growth in developed countries has got much worse in the last three months, the OECD said on Thursday.
Tropical Storm Nate, the 14th named storm this season, was gaining strength and could become a hurricane on Friday or Saturday, the U.S. National Hurricane Center said.
The storm has prompted producers in the Gulf of Mexico to begin another round of evacuations of nonessential workers.
G7 finance chiefs meet later on Friday, with the faltering global recovery and Europe's problems likely to be the issues of the day. (Editing by Keiron Henderson)
