* Oil tumbles $100 from July record of $147.27
* OPEC makes only 66 percent of pledged cuts in November
* U.S. crude stocks likely rose for third time last week
(Updates with Brent settlement price)
By Rebekah Kebede
NEW YORK, Dec 2 (Reuters) - Oil prices fell nearly 5
percent to below $47 a barrel on Tuesday, down $100 from their
peak, driven down by a gloomy economic outlook and news that
OPEC made only two-thirds of its pledged supply cuts in
November.
U.S. crude settled at $46.96 a barrel, down $2.32, or 4.71
percent, the lowest settlement since May 2005.
London Brent settled at $45.44 a barrel, down $2.53.
Crude prices have now fallen from a record $147.27 a barrel
struck in July as the mushrooming global economic crisis hits
demand in the United States and other large consuming nations.
"Fears of a deep global recession continue to linger over
the markets like a dark cloud as traders try to ascertain not
only the deepness of the slowdown but how long it will take for
the recovery to take hold," said Chris Jarvis, senior analyst,
Caprock Risk Management in Hampton Falls, New Hampshire.
"As a result, crude oil remains on its slippery slope,
looking for direction and a bottom as is the case with the
majority of the asset classes."
In September, U.S. oil demand fell to its lowest level for
any month in more than a decade, the U.S. Energy Information
Administration said last week.
Members of the Organization of Petroleum Exporting
Countries had pledged to lower output by 1.5 million barrels
per day for November in order to prop up prices, but were only
66 percent compliant with the target last month, a Reuters
survey showed on Tuesday.
OPEC's decision to wait until later this month to take more
supply off the market, combined with a steep sell-off in U.S.
stocks, led to a drop of more than 9 percent in U.S. crude oil
futures on Monday.
Benchmark U.S. stock indexes were up more than 3 percent on
Tuesday as investors hunted for bargains amid optimism that the
government will bail out the U.S. auto industry.
OPEC CUTS
OPEC members remained concerned about oversupply in the
world oil market and may decide to cut output further at their
next meeting in Algeria on Dec. 17.
"We are concerned about the glut ... I think there is an
indication that we will have another cut," Qatar Oil Minister
Abdullah al-Attiya said.
Top oil exporter Saudi Arabia has highlighted $75 a barrel
as a "fair price" for oil.
Meanwhile, sources said two OPEC members, the United Arab
Emirates and Kuwait, will increase oil sales to many major
Asian customers, sending mixed signals about OPEC output cuts.
More bearish news for oil prices could be in store on
Wednesday, when the U.S. government reports weekly oil
inventory data.
A Reuters poll of analysts showed U.S. crude inventories
likely rose by 1.7 million barrels last week, a third
consecutive weekly build, as imports continued to increase.
(Additional reporting by Christopher Johnson and Jane Merriman
in London and Annika Breidhardt in Singapore; Editing by
Christian Wiessner)
