Energy Update

* Oil traders price in risk premium as Saudi-Iran crisis deepens * But oil markets remain oversupplied because of high production * Benchmark Dubai physical crude falls to lowest since 2004 * Asian economic slowdown could hit oil demand (Adds Dubai physical price, updates futures prices) By Henning Gloystein SINGAPORE, Jan 4 (Reuters) - Oil prices jumped in early trading of its first session in the new year as relations between major crude producers Saudi Arabia and Iran de

LONDON, Jan 3 (Reuters) - With crude prices at 11-year lows, the world's biggest oil and gas producers are facing their longest period of investment cuts in decades, but are expected to borrow more to preserve the dividends demanded by investors.

HOUSTON, Jan 4 (Reuters) - U.S. "stripper well" operators, the nation's smallest oil producers seen as most likely to succumb to the crude price slump, are hanging in tough, reducing the chances of near-term production cuts needed to rebalance the domestic oil market.

(Corrects second paragraph to show tensions between Saudi Arabia and Iran) * Won falls on intervention risk as yuan hits 4-1/2-yr low * Shares down on tepid China PMI SEOUL, Jan 4 (Reuters) - The South Korean won and shares weakened on Monday morning as a survey on Chinese factory activity for December came in below forecasts, rekindling concerns over the economic health of South Korea's biggest trading partner. A flare-up in tensions between Saudi Arabia and Iran also spurre