UPDATE 3-Oil falls below $48 to 3-1/2-year low

                                
 * Fall-out from OPEC meeting still depressing market
                                
 * Nikkei, European stocks fall sharply
                                
 * U.S. crude stocks likely rose for third time last week
 
 (Updates throughout, changes dateline, pvs SINGAPORE)
                                
 By Christopher Johnson
                                
 LONDON, Dec 2 (Reuters) - Oil fell to a 3-1/2-year low below
$48 a barrel on Tuesday as signs grew that the global economy
was in worse shape than thought and after OPEC opted to delay
talks on further output cuts.
                                
 U.S. stocks closed sharply lower on Monday and Japan's
Nikkei average followed suit, sliding more than 6 percent with
exporters hit by a stronger yen after news the U.S. economy has
been in a recession for a year heightened risk aversion.
European stocks also fell [.N] [.T] [.EU].
                                
 U.S. light crude for January delivery <CLc1> slipped $1.92
or 3.9 percent to a low of $47.36 a barrel, its lowest since May
2005 and almost $100 off the record peak of $147.27 reached in
mid-July. That followed a more than 9 percent dive on Monday.
                                
 By 0923 GMT, U.S. crude futures had recovered slightly,
trading down $1.25 at $48.03.
                                
 London Brent crude <LCOc1> dropped $1.30 to $46.67.
                                
 Producer group OPEC over the weekend deferred a decision on
whether to deepen production curbs until later this month as
Saudi Arabia and other Gulf members called for greater
compliance, a delay that sent oil prices tumbling on Monday.
                                
 "OPEC was the key reason for the sell-off at first and then
the poor performance on equity markets helped it follow
through," said Rob Laughlin, oil analyst at MF Global in London.
                                
 More bearish news could be in store on Wednesday, with U.S.
crude oil inventories likely having risen by 1.8 million barrels
last week, a third consecutive build, as imports continued to
increase, a preliminary Reuters poll of analysts showed. [EIA/S]
                                
 The Organization of the Petroleum Exporting Countries is
ready to cut production by a significant amount when it meets
later this month in Algeria in order to whittle down high
stocks, the group's secretary-general said on Monday.
[ID:nDAH131976]
                                
 But Saudi Arabian Oil Minister Ali al-Naimi told Saudi-owned
al-Hayat newspaper OPEC would not need to make a further output
cut in Algeria if producers comply with previous curbs and fuel
stocks decline. [ID:nLU157636]
                                
 Adding to the uncertainty, Abu Dhabi National Oil Co (ADNOC)
told major Asian customers that it will increase term crude oil
supplies next month, although traders said it seemed unlikely
the UAE was reneging on its OPEC obligations. [ID:nT3238]
                                
 With demand destruction in focus, concerns about the pace of
non-OPEC oil supply growth were set aside.
                                
 Oil production in Russia, which vies with Saudi Arabia as
the world's top producer, fell in November by 0.4 percent versus
October, Energy Ministry data showed on Tuesday. [ID:nL2142155]
                                
 (Additional reporting by Annika Breidhardt in Singapore;