Oil dipped below $63 a barrel today 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.
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 today.
US light crude for December delivery fell 30 cents to $62.92, after earlier touching a session high of $65.20.
London Brent crude traded down 79 cents to $60.62.
Stocks rose today 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.
"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.
US 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.
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.
US 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.