* Coordinated rate cuts fail to lift worries of downturn
* U.S. crude, gasoline stocks rise
* OPEC considers November emergency meeting
(Updates prices, adds G7, IMF meetings)
By Annika Breidthardt
SINGAPORE, Oct 9 (Reuters) - Oil slid by more than a dollar
to below $88 a barrel on Thursday, as a series of bold rescue
moves by policy makers around the world failed to soothe fears
the global economy was heading for a meltdown.
A much larger than expected rise in U.S. crude and gasoline
inventories underlined worries that the economic crisis would
hit oil demand, a concern that has sent crude tumbling about
$60 a barrel from its record high above $147 in July.
U.S. light crude for November delivery <CLc1> fell $1.15 to
$87.80 a barrel at 0555 GMT. On Wednesday oil hit a 10-month
low of $86.05, but pared some of those losses during the
session.
London Brent crude <LCOc1> fell $1.21 to $83.15 a barrel.
Wednesday's coordinated rate cuts were the latest salvo
from financial policy makers in response to a crisis that has
sent stock and credit markets around the globe into a tailspin,
toppled banks in the United States and Europe and reshaped the
U.S. presidential election.
But the moves failed to lift battered stock or credit
markets, and the International Monetary Fund added further
gloom when it said the world economy was set for a major
downturn with the United States and Europe either in or on the
brink of recession. []
"The slashing of borrowing rates was not enough to sustain
the market as further demand destruction data as well as
bearish U.S. inventory numbers caused traders to push the
market lower once again," said Jonathan Kornafel, Asia director
at options trader Hudson Capital Energy.
Investors will be keen to hear on the crisis from finance
ministers and central bankers who are descending on Washington
for the annual meetings of the International Monetary Fund and
World Bank as well as the Group of Seven this week.
[]
Commercial supplies of crude in the United States surged
8.1 million barrels to 302.6 million barrels in the week to
Oct. 3, the Energy Information Administration said, more than
triple the forecasts by analysts for a 2.3 million barrels
increase. []
Gasoline stocks rose 7.2 million barrels to 186.8 million
barrels last week, EIA said, more than six times the 1.1
million barrel rise analysts had forecast, data showed.
Even statements from OPEC oil ministers that the producer
group may cut oil output to bolster prices failed to lift
sentiment.
Algerian state news agency APS reported the Organization of
the Petroleum Exporting Countries (OPEC) planned an emergency
meeting on Nov. 18 in Vienna. []
"Although OPEC will be attempting to drive some support
into the market ... we look for these efforts to provide only
limited support," said Jim Ritterbusch, president of
Ritterbusch & Associates.
"While OPEC production decisions can spur some impact
during a period in which the focus is on tight supply, the
(group) doesn't have a good track record of propping up oil
values in a period of weak demand," Ritterbusch added.
(Reporting by Annika Breidthardt; Editing by Michael
Urquhart)
