* Oil falls 3 pct after data shows US economy shrank 0.3
pct
* Aug U.S. oil demand down 8.4 pct, at weakest since 2001
* Nigeria cuts oil export volumes 5 pct after OPEC pact
(Updates prices, data, recasts headline, lead)
By Maryelle Demongeot
SINGAPORE, Oct 31 (Reuters) - Oil fell for a second day on
Friday, dropping more than 3 percent towards $64 a barrel and
set for its biggest ever monthly loss after weak U.S. economic
data refocused attention on falling demand.
U.S. gross domestic product contracted at an annual rate of
0.3 percent for the third quarter, the sharpest fall in the
world's largest oil consumer in seven years, knocking
commodities lower across the board on fears of weakening
fundamentals. A rebounding U.S. dollar also weighed.
U.S. light crude for December delivery <CLc1> fell $1.85 to
$64.11 a barrel by 0637 GMT, adding to Thursday's $1.54 loss
that cut short a brief rally earlier in the week. Oil is now on
track for a more than 35 percent loss this month, its biggest
ever.
London Brent crude <LCOc1> fell $1.93 to $61.78.
"Concerns that the weak international economic outlook will
depress oil consumption remain a negative for the oil price,"
David Moore, commodity strategist for the Commonwealth Bank of
Australia, said in a daily note.
Adding pressure on oil, the U.S. dollar rebounded from lows
fetched on Wednesday, making dollar-denominated commodities
less attractive for investors. []
Recent data showed demand was hit by high prices even
before the crisis intensified, with revised U.S. oil
consumption in August tumbling 8.4 percent from a year ago to
19.267 million bpd, with demand at its lowest for any month
since December 2001, Energy Information Administration data
showed. []
Oil has more than halved since its record high of $147.27
from July as the economic crisis batters demand in the United
States and other major consumers, and saps investor appetite
for riskier assets including stocks and commodities.
Signs that OPEC is acting on its decision to cut output by
1.5 million barrels per day (bpd) have failed to lift prices.
Nigeria announced a 5 percent cut in exports in November and
December after Abu Dhab made similar moves. Top exporter Saudi
Arabia has yet to inform customers of fresh curbs.
Venezuelan Oil Minister Rafael Ramirez said on Thursday
OPEC should cut oil output by another 1 million barrels per day
-- possibly before its next scheduled meeting in December --
and should set a minimum price target of $70 or $80 a barrel.
[]
On Thursday, oil and other commodities decoupled from the
stock markets, which rallied around the world on optimism that
interest rate cuts by the U.S. Federal Reserve and other
central banks will ease a looming global recession.
[]
But Asian stock markets showed a mixed picture on Friday,
with Japan's Nikkei <> down 5 percent but Seoul shares
extending the previous session's record 12 percent jump to
settle 2.6 percent higher, posting their biggest weekly gain
ever.
(Editing by Michael Urquhart)
