* OPEC may cut output again
* U.S. consumer confidence plunges to record low
* U.S. crude inventories, evidence awaited of OPEC cut
(Recasts, updates prices, market activity)
By Chris Baldwin
NEW YORK, Oct 28 (Reuters) - Oil dipped below $63 a barrel
on Tuesday as concerns about the global economy offset OPEC
comments the producer group could throttle back on output again
to support prices.
Oil found support early on evidence OPEC would act on last
week's decision to cut production as the United Arab Emirates
state oil company reduced volumes to term customers.
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OPEC ministers will take further steps to prop up the oil
market and could call another meeting before the group's next
scheduled talks in December, officials said on Tuesday.
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U.S. light crude for December delivery <CLc1> fell 30 cents
to $62.92 by 2:34 p.m. EDT (1834 GMT), after earlier touching a
session high of $65.20.
London Brent <LCOc1> crude traded down 79 cents to $60.62.
Stocks rose on Tuesday but pared early gains, led by the
downtrodden technology and energy sectors, a day after a late
slide sent U.S. shares to their lowest levels in 5-1/2 years.
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"Crude has yet to find an independent course of direction
as it continues to track very closely the equity and currency
markets," said Nauman Barakat, senior vice president at
Macquarie Futures USA.
The credit crisis that began with failing U.S. mortgages
has widened into a worldwide rout with investors dumping stocks
and commodities, shunning higher-risk emerging markets and
seeking out the safest government bonds and currencies.
U.S. consumer confidence plunged to record low in October
as the economy appeared to be sliding into a deep recession,
threatening to pull the rest of the world along with it.
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The Conference Board's index dropped to 38 in October from
an upwardly revised 61.4 in September. It was the lowest
reading since the research group's index began in 1967. The
previous low was 43.2 in December 1974.[]
Global economic already has cut fuel consumption. Some
analysts predict that $50 a barrel -- roughly seen as the cash
cost of production for many newer oil projects -- is possible
in the short term.
U.S. crude already has dropped by nearly 60 percent from
its record above $147 a barrel in July to a low of $61.30 on
Monday, the weakest in 17 months.
OPEC's announcement last week it would cut output by 1.5
million barrels per day initially did little to stem oil's fall
as the market was sceptical the group would really reduce
supplies.
The United Arab Emirates Abu Dhabi National Oil Co (ADNOC)
on Tuesday notified customers it was cutting contracted volumes
for some crude by 5 percent, in line with last week's OPEC
deal.
For the next indication of the balance of supply and
demand, traders were looking ahead to U.S. fuel stocks data to
be released on Wednesday.
Crude inventories were expected to have risen for the fifth
week in a row last week following higher imports, a preliminary
Reuters poll of eight industry analysts showed. []
(Additional reporting by Joe Brock and Barbara Lewis in
London; Editing by David Gregorio)
