(Corrects day of the week in paragraph 10 to Wednesday)
* Oil extends slide to new 13-month low on demand worries
* US stocks plunge, Nikkei down 9.6 pct on recession
spectre
* US data expected to show third weekly rise in crude
stocks
* Hurricane Omar strengthens, Caribbean refinery shuts
units
SINGAPORE/TOKYO, Oct 16 (Reuters) - Oil fell for a third
day on Thursday, plumbing a new 13-month low below $73 as
commodity investors again rushed for the exit on fears of a
collapse in demand growth as the world economy tilts toward
recession.
Bleak U.S economic data and warnings from the U.S. Fed that
tough times are not over led Wall Street to its worst day since
the 1987 stock market crash, wiping out earlier optimism
fuelled by government steps to avert a financial meltdown.
Japan's Nikkei index dived 9.55 percent in early trade.
[]
U.S. crude for November delivery <CLc1> fell $1.56, or
about 2 percent, to $72.98 a barrel by 0154 GMT. The
front-month contract has lost nearly a third in value in three
weeks, the steepest such decline since it began trading in
1983.
London Brent crude <LCOc1> fell $1.30 to $69.50.
"The oil markets are now highly correlated to the stock
markets. Everyone now uses the stock markets to gauge the
health of the economy," said Clarence Chu at U.S.-based options
trader Hudson Capital Energy.
Crude now stands more than 50 percent off its July peak
above $147, and analysts have scaled back global demand growth
estimates after a recent slew of gloomy data that has
overshadowed OPEC's talk of possible production cuts and a
hurricane that is disrupting Carribean refining operations.
U.S. retail gasoline demand last week fell more than 9
percent year-on-year for a second straight week as consumer
spending slowed, MasterCard Advisors said. []
JP Morgan cut its average oil price forecast for 2009 to
$74.75 a barrel, and the Organization of the Petroleum
Exporting Countries also reduced its forecasts for world demand
for crude next year in its latest monthly report. []
The cartel meets in November in Vienna to assess the global
financial crisis's effect on the oil market, with growing
expectations it will want to lend support to a market that's
been swept up in the deleveraging across commodity markets.
The Reuters-Jefferies CRB index <.CRB> tumbled 4.5 percent
on Wednesday to its lowest in three-and-a-half years.
"Sentiment is just so bearish. I would think $70 is a
pretty strong support, but the way the market is selling down,
we just don't know," Chu said.
U.S. weekly oil inventory data due later in the day is
expected to show that crude oil stocks probably rose for the
third straight week, gaining 1.9 million barrels, while
distillate and gasoline stocks also increased amid weak demand,
an expanded Reuters poll showed. []
The data is to be announced at 11 a.m. EDT (1500 GMT), a
day later than usual due to Columbus Day on Monday.
Hurricane Omar, which disrupted shipments from Venezuela
this week, strengthened into a Category 2 storm on Wednesday as
it headed toward Puerto Rico and the northeastern Caribbean,
but was on a northeast trajectory away from the U.S. Gulf, the
National Hurricane Center said. []
Processing units at the 500,000 barrel-per-day Hovensa
refinery on St. Croix in the U.S. Virgin Islands, a large
supplier of gasoline and heating oil to the U.S. East Coast,
were being shut down ahead of Omar's arrival, Hess Corp <HES.N>
said.
(Reporting by Chua Baizhen and Osamu Tsukimori in TOKYO;
Editing by Jonathan Leff)
