UPDATE 8-Oil drops 5 pct, US GDP fall stokes demand worries

                                
 * U.S. Q3 GDP falls sharply
                                
 * Iran calls for non-OPEC cooperation in output cuts
                                
 (Updates throughout, changes dateline from LONDON)
                                
 NEW YORK, Nov 25 (Reuters) - Oil tumbled by more than 5
percent on Tuesday to below $52 a barrel after data showed the
U.S. economy in the third quarter shrank more than previously
estimated, stoking concerns fuel demand will slow further.
                                
 The U.S. Commerce Department revised the annual rate of
decline in third-quarter gross domestic product to 0.5 percent
from the 0.3 percent it reported a month ago. It was the
sharpest fall in GDP since the third quarter of 2001.
[nN25396155]
                                
 U.S. crude <CLc1> fell $3.05 to $51.45 a barrel by 12:39
p.m. EST (1739 GMT). London Brent crude <LCOc1> traded down
$2.62 to  $51.31 a barrel.
                                
 "Crude and products futures are lower," said Addison
Armstrong, analyst at Tradition Energy. "The bleak demand
outlook once again becomes the focus of traders."
                                
 U.S. stocks extended losses, sending the Nasdaq down more
than 2 percent, as investors pummeled technology shares on
concerns about the deepening economic downturn. [nN25405799]
                                
 Slowing demand and recession concerns have knocked oil from
its peak over $147 a barrel in July, prompting members of the
Organization of Petroleum Exporting Countries (OPEC) to call
for further supply reductions to support prices.
                                
 OPEC ministers next gather in Cairo on Nov. 29 but that
meeting has been called a consultative session with its next
policy-setting meeting scheduled for Dec. 17 in Algeria.
                                
 Price hawk Iran on Tuesday said non-OPEC states should
cooperate with OPEC in stabilizing the oil market because if
the group acts alone prices will continue to fall.
[nBLA538778]
                                
 Russia's energy minister said he would not rule out cutting
production along with OPEC, though analysts said it would be
difficult for the giant exporter to take meaningful action.
[nDEL396983]
                                
 OPEC members Iran and Venezuela have called on the cartel
to cut at least another 1 million barrels per day after last
month's 1.5 million bpd cut failed to lift prices. OPEC
President Chakib Khelil said on Monday the current market
weakness implied the need for a reduction of more than 1
million bpd.
                                
  A Reuters poll of analysts ahead of weekly U.S. government
inventory data due out on Wednesday forecast a 400,000 barrel
build in crude stocks for the week to Nov. 21, a 1 million
barrel draw in distillate stocks, and a 700,000 barrel rise in
gasoline inventories. [nN24519599]
                                
 "People are expecting builds on crude stocks when EIA data
is released on Wednesday, so traders are factoring that in,"
said Mark Waggoner, president of Excel Futures.
  (Reporting by Matthew Robinson and Gene Ramos; Jane Merriman
and Barbara Lewis in London and Maryelle Demongeot in
Singapore; Editing by David Gregorio)