By Mark Shenk Oct. 9 (Bloomberg) -- Crude oil fell more than $1 a barrel in New York on concern that the coordinated cut of interest rates by central banks yesterday may be insufficient to prevent a prolonged global recession. Oil prices have plunged since reaching a record in July on signs that fuel demand will drop because of the weak economy. The Federal Reserve, the European Central Bank and the Bank of England cut rates to spur an economic rebound. U.S. stocks slid for a seventh day because of a slump in financial companies. ``The main driver of the market has been concern that the global economy will contract,'' said Michael Fitzpatrick, vice president for energy risk management at MF Global Ltd. in New York. ``There's been a lot of trading on emotion because of the recent headlines.'' Crude oil for November delivery fell $1.59, or 1.8 percent, to $87.36 a barrel at 11:35 a.m. on the New York Mercantile Exchange. Futures touched $86.05 yesterday, the lowest since Dec. 6. Prices, which are up 8.5 percent from a year ago, have dropped 41 percent from the record $147.27 a barrel reached on July 11. ``We held at important support around $86 yesterday,'' said Tom Bentz, senior energy analyst at BNP Paribas in New York. ``If we are able to break through, prices are going to fall to the lower $80s and maybe the high $70s.'' The U.S., which consumes 24 percent of the world's oil, is now in a recession, according to a Bloomberg News survey of economists. The economy will shrink at a 0.2 percent annual pace in the third quarter and 0.8 percent in the last three months of 2008, according to the median estimate of 52 economists surveyed Oct. 3 to Oct. 8. Fuel Demand U.S. fuel demand averaged about 18.7 million barrels a day during the past four weeks, the lowest since June 1999, according to an Energy Department report yesterday. The figure is down 8.6 percent from the year-earlier period, the department said. Supplies of gasoline rose 7.18 million barrels, or 4 percent, to 186.8 million barrels as refinery output climbed 8.7 percentage points to 80.9 percent, the report showed. It was the biggest increase in refinery utilization since records began in 1989. Gasoline stockpiles climbed the most in seven years. Iranian Oil Minister Gholamhossein Nozari said that the Organization of Petroleum Exporting Countries may hold an emergency meeting in November to review oil output, state news agency IRNA reported. The next scheduled meeting of ministers is Dec. 17 in Algeria. Brent crude oil for November settlement declined $1.80, or 2.1 percent, to $82.56 a barrel on London's ICE Futures Europe exchange. To contact the reporter on this story: Mark Shenk in New York at mshenk1@bloomberg.net.

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