* U.S. crude falls to lowest level since March 2007
* IMF warns of deepening recession in rich countries
* Venezuela presses for further OPEC supply cuts
(Updates throughout, adds byline)
By Matthew Robinson
NEW YORK, Nov 6 (Reuters) - Oil tumbled nearly 7 percent on
Thursday on expectations that demand would slow further after
the International Monetary Fund predicted developed economies
would deliver their worst performance since World War II.
U.S. crude <CLc1> settled down $4.53 at $60.77 a barrel,
adding to a 7 percent drop from Wednesday. London Brent crude
<LCOc1> dropped $4.44 to settle at $57.43 a barrel.
The IMF said it now expects 2009 global economic growth of
2.2 percent, down 0.8 percentage point from its October
forecast. It also lowered its 2009 baseline oil price
projection to $68 a barrel from $100.
Oil prices have dropped from record highs above $147 a
barrel in July as the growing global economic crisis damps
demand in developed economies.
U.S. government data released on Wednesday showed an
unexpected rise in gasoline stocks last week, following a 2.3
percent fall in demand in the world's biggest energy consumer.
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"Oil prices slipped back further into a recently
established trading range yesterday and overnight, as the focus
of participants was on the threats to demand posed by a
contracting global economy," John Kilduff, senior vice
president at MF Global, wrote in a research note.
Growth in U.S. productivity slowed sharply during the third
quarter despite efforts by businesses to keep it aloft by
slashing payrolls, the Labor Department said. []
Britain and Europe slashed interest rates on Thursday just
ahead of the IMF forecast, but the moves failed to halt the
slide of global stock markets. []
U.S. auto executives planned to meet with a top U.S.
lawmaker to lobby for urgent aid to survive a deepening global
downturn that industry leader Toyota Motor Corp <7203.T> <TM.N>
warned would drive its operating profit to a 13-year low.
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OPEC CUTS
Slowing demand and the sharp price drop prompted the
Organization of Petroleum Exporting Countries to agree to cut
output by 1.5 million barrels per day at an emergency meeting
last month.
While market sources and members of the producer group say
the reductions are already being made, Venezuelan Oil Minister
Rafael Ramirez said on Thursday OPEC needed to reduce output by
a further 1 million barrels per day. []
OPEC seaborne oil exports, excluding Angola and Ecuador,
will drop 310,000 bpd in the four weeks to Nov. 22 and will
have fallen 700,000 bpd from an August supply peak, an oil
analyst who tracks future flows said. []
Although the oil market has been more strongly focused on
weak demand than tight supplies, analysts have said OPEC's
action would provide support at some point.
"The circuit breaker is OPEC," Mike Wittner of Societe
Generale said, adding that eventually limited supplies would
struggle to match demand.
"The long-term story still hasn't really changed," he said.
"Lower prices encourage demand and discourage supply."
The International Energy Agency said on Thursday the world
will have to live with the risk of an energy supply crunch and
an oil price well above $100 a barrel in the years to come.
[]
(Additional reporting by Gene Ramos and Robert Gibbons in New
York and David Sheppard, Barbara Lewis and Christopher Johnson
in London; Editing by Christian Wiessner)
