UPDATE 5-Oil dives towards $60 on deep economic gloom

                                
 * U.S. crude falls nearly $5 to lowest since March 2007
                                
 * IMF predicts developed economies facing first full-year
contraction since World War II
                                
 * Venezuela presses for further OPEC supply cut
                                
 
 (Updates prices)
                                
 By David Sheppard
                                
 LONDON, Nov 6 (Reuters) - Oil dived to just above $60 a
barrel on Thursday, extending the previous day's 7 percent drop,
after the International Monetary Fund warned developed economies
would deliver their worst performance since World War II.
                                
 U.S. crude <CLc1> was trading at $60.84 a barrel by 1633
GMT, just off a session low of $60.16, which was the lowest
since March 2007. London Brent Crude <LCOc1> dropped $4.34 to
$57.53.
                                
 Selling accelerated after the IMF said developed economies
were heading for the first full-year contraction in more than
half a century.
                                
 It also lowered its 2009 baseline oil price projection to
$68 per barrel from $100.
                                
 Oil prices had already dropped on Wednesday after U.S.
government data showed an unexpected rise in gasoline stocks
following a 2.3 percent fall in demand in the world's biggest
energy consumer. [EIA/S]
                                
 Faced with a major drop in consumption, the Organization of
the Petroleum Exporting Countries has already cut supplies
following an emergency meeting and some of its members have
already called for further action.
                                
 Venezuelan Oil Minister Rafael Ramirez said on Thursday OPEC
needed to reduce output by a further million barrels per day,
following on from the 1.5 million bpd cut agreed last month.
                                
 Although the oil market has been more strongly focused on
weak demand than tight supplies, analysts have said OPEC's
action would at some point provide support.
                                
 "The circuit breaker is OPEC," said Mike Wittner of Societe
Generale.
                                
 Over the long term, he predicted limited supplies would
struggle to match demand.
                                
 "The long term story still hasn't really changed," he said
further. "Lower prices encourage demand and discourage supply."
                                
 In its World Energy Outlook to be released in full next
week, which covers the period up to 2030, the International
Energy Agency said the world faced an energy supply crunch and
an oil price above $100 a barrel.
                                
 (additional reporting by Barbara Lewis and Christopher
Johnson)