Oil falls to lowest since May 2007

By Bernie Woodall

LOS ANGELES (Reuters) - Oil prices fell nearly $1 to an 18-month low on Monday as slumping demand and the growing financial crisis offset OPEC plans to cut output.

U.S. crude fell 93 cents to $63.22 a barrel, the lowest settlement price since since May 29, 2007. London Brent crude settled down 64 cents to $61.41 a barrel.

Oil prices have dropped by nearly 60 percent from a record high $147.27 a barrel in July as global economic turmoil dents world fuel consumption.

Demand has fallen in the United States, the world's top energy consumer, and in other industrial countries as the credit crisis infects the wider economy and begins to spread to emerging markets.

In China, apparent oil demand rose by just over 2 percent in September, the slowest growth in 10 months. [nPEK2698]

More U.S. banks lined up for government cash on Monday and the Group of Seven expressed concern the soaring Japanese yen posed a threat to financial and economic stability as recession worries spread worldwide. [nLR268373]

U.S. stocks slid on Monday amid growing concerns about the severity of a global economic slowdown and the bleak outlook for corporate profits. [nN27342079]

"It's unbelievable how closely we've been tracking equities," said Andy Lebow, vice president at MF Global in New York. "They're the dominating factor in the market right now when everyone is trying to digest everything that has gone on."