UPDATE 10-Oil dips below $63 as faltering demand trumps OPEC

                                
 * OPEC may cut output again
                                
 * U.S. consumer confidence plunges to record low
                                
 * U.S. gasoline demand down 6.4 percent year on year
 (Adds post-settlement price action in paragraph 2)
                                
 By Chris Baldwin
                                
 NEW YORK, Oct 28 (Reuters) - Oil prices dipped below $63 a
barrel on Tuesday as concerns about faltering demand offset
OPEC comments suggesting the producer group could throttle back
output again to support prices.
                                
 U.S. crude <CLc1> settled down 49 cents at $62.73 a barrel,
before rising to $64.10 in post-settlement trade.
                                
 London Brent <LCOc1> crude settled $1.12 lower at $60.29 a
barrel.
                                
 Oil demand in the United States and other large consumer
nations has dropped this year due to the slumping economy,
dragging crude off record highs above $147 a barrel in July.
                                
 Gasoline demand fell by 6.4 percent last week versus
year-ago levels, according to data from MasterCard Advisors
released on Tuesday. [nN28407669]
                                
 The losses in oil prices came despite a rally in U.S.
stocks as investors scoured the market for bargains.
[nN28405646]
                                
 Oil has tracked global stock markets at times over the past
month as the financial crisis deepened.
                                
 "Seems oil is finally detaching itself from the stock
market. At least for today," said Tom Bentz, an analyst at BNP
Paribas Commodity Futures Inc.
                                
 Crude prices found support early on evidence the
Organization of Petroleum Exporting Countries would act on last
week's decision to cut production as the United Arab Emirates
state oil company reduced volumes to term customers.
[nLS244614]
                                
 OPEC ministers will take further steps to prop up the oil
market, and could call another meeting before their next
scheduled talks in December, officials of the producer group
said on Tuesday. [nLS186457]
                                
 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 a 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.
[nLS110165]
                                
 The Conference Board's consumer confidence 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.
[ID:nN28387409]
                                
 The global economic decline 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.
                                
 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 skeptical the group would really reduce
supplies.
                                
 U.S. government inventory data due out on Wednesday was
expected to show a rise of 1.4 million barrels in crude stocks,
according to a Reuters poll. [EIA/S]
                                
 Distillate stocks were seen up 800,000 barrels, while
analysts forecast a rise of 1.2 million barrels in gasoline
stocks.
 (Additional reporting by Joe Brock and Barbara Lewis in
London; Editing by David Gregorio)