* OPEC expected to cut output at Friday meeting
* Asian demand for West African crude down
* Stock markets fall on recession concerns
(Updates prices, inventory poll, adds U.S. gasoline demand
data, quote from OPEC secretary general)
By Edward McAllister
NEW YORK, Oct 21 (Reuters) - Oil tumbled 4 percent on
Tuesday amid worries a global recession will crush fuel demand,
limiting the impact of any supply cuts by OPEC.
U.S. crude for November delivery <CLc1>, which expired on
Tuesday, settled down $3.36 at $70.89 a barrel.
London Brent crude <LCOc1> traded down $2.33 at $69.70 at
2:38 p.m. EDT (1838 EDT).
The slide came as U.S. stocks fell on concern that earnings
could be driven down by slower consumer demand.
[]
"Crude prices are down on demand consideration, with
weakness being stoked by bearish economic data," said Kyle
Cooper, director of research at IAF Advisors.
U.S. weekly retail gasoline demand to Oct. 17 fell 6.4
percent year-on-year, Mastercard Advisors said Tuesday, though
gains were seen on the previous week. []
Total Asian demand for West African crude was down 27
percent to 918,000 barrels per day (bpd) in November from 1.25
million bpd in October as demand from India, Indonesia and
Taiwan decreased, according to traders. []
The oil market has slid 50 percent since hitting a record
high above $147 in mid-July. The fall came as demand slumped in
the United States, the world's largest energy consumer, and
other industrial countries hit by the credit crisis.
The Organization of the Petroleum Exporting Countries is
due to meet in Vienna on Friday. The producer group is expected
to reduce output to defend prices and temper the effects of the
financial crisis.
Iran has said a drop in demand could push OPEC to cut
output by 2 million to 2.5 million barrels per day (bpd), while
other members have said a smaller cut may be needed.
OPEC could face an intense debate on how much oil members
should take off global markets as they balance their price
needs against risks to a fragile world economy. []
OPEC Secretary General Abdullah al-Badri has led the call
for output cuts, telling reporters Tuesday that the world faces
an over-supply of oil next year if leading producers fail to
cut supply. []
"If things stay as they are, there will be a huge excess of
supply in 2009," Badri said.
The International Energy Agency, which advises
industrialized countries, has said an OPEC output cut could
prolong a global economic slowdown.
MARKETS SLIDE
Oil and commodities have tracked equity markets in the past
few weeks as the financial crisis hit the demand outlook.
U.S. stocks fell on Tuesday amid concerns the global
economy might be sliding toward recession [].
European shares gave up early gains that had followed a
rise in U.S. stock markets on Monday.
"I think (oil prices) moved in line with equities yesterday
and are now pulling back, using stock markets as a barometer
for demand," said Christopher Bellew at Bache Commodities.
Japan and France extended more help to banks, the IMF
prepared to intervene in trouble spots around the world and the
Fed devised a new plan to inject liquidity into money markets
to curb the worldwide financial crisis. []
U.S. crude oil inventories probably rose 2.6 million
barrels last week, an updated Reuters poll showed ahead of U.S.
government energy data due on Wednesday. []
The poll also showed forecasts for a 100,000-barrel rise in
distillate inventories, which include heating oil and diesel,
and a 2.8 million barrel gain in gasoline supplies.
(Reporting by Edward McAllister, Gene Ramos and Robert Gibbons
in New York; Joe Brock and Jane Merriam in London; Fayen Wong
in Perth; editing by Jim Marshall)
