* U.S. crude extends decline, falls below $60/bbl
* IMF warns of deepening recession in rich countries
* Venezuela presses for further OPEC supply cuts
By Fayen Wong
PERTH, Nov 7 (Reuters) - Oil fell below $60 a barrel for
the first time in 20 months on Friday, extending its overnight
drop of 7 percent, as spreading economic gloom further dampened
the outlook for energy demand.
The International Monetary Fund said on Thursday it now
expects 2009 global economic growth of 2.2 percent, down 0.8
percentage points from its October forecast. It also cut its
2009 baseline oil price projection to $68 a barrel from $100.
U.S. light crude for December delivery <CLc1> fell 44 cents
to $60.33 a barrel by 0150 GMT, having earlier fallen to
$59.97, its lowest since Mar. 22, 2007. London Brent Crude
<LCOc1> was down 73 cents to $56.70.
Oil prices have tumbled more than 10 percent this week as a
series of dismal economic data from the United States sharpened
investors' worries of a protracted global recession and growing
U.S. fuel stockpiles underscored thinning energy demand.
"The Bank of England and the European Central Bank may have
cut rates, but fears that a deep international economic
downturn would curb commodity demand continued to dominate
market thinking," said David Moore, a senior commodities
strategist at the Commonwealth Bank of Australia.
Britain and Europe slashed interest rates on Thursday amid
recession fears deepened by some of the worst U.S. retail sales
in decades and an IMF forecast for an economic contraction not
seen since World War Two. []
Moves by top automaker Toyota to halve its profit forecast
and expectations the U.S. could report another 200,000 job
losses on Friday also added to signs of distress.
Analysts said Asian stock markets' performance and dollar
movements would be key to oil prices.
Fears of a global recession dragged down Asian stocks on
Friday, with the Japan's Nikkei average <> tumbling 6
percent and Australia's S&P/ASX 200 Index <> shedding 4
percent in early trading.
Traders will also be looking towards U.S. economic
indicators due out later on Friday, including government
reports on October unemployment data and September wholesale
inventories, to gauge how the world's largest economy is
faring.
In just about three months, oil prices lost nearly $90 from
record highs above $147 a barrel, as the growing global
economic crisis cuts energy demand in the United States, the
world's largest energy consumer, and other industrialised
nations.
Slowing demand and the sharp price drop drove producer
cartel 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's 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. []
(Reporting by Fayen Wong; Editing by Sambit Mohanty)
