Perth: Oil fell back towards the previous day's 16-month low below $68 a barrel on Friday, as investors shrugged off a likely OPEC production cut to focus to signs of a prolonged global recession.
Asian stocks fell on Friday, led by a 7 per cent drop in Japan's Nikkei average and South Korean shares.
Bleak outlooks from world car makers and a barrage of job cuts by major US companies, including Chrysler and Xerox, have also deepened fears of an extended global recession.
US light crude for December delivery fell 21 cents to $67.53 a barrel by 0443 GMT, erasing earlier gains of as much as $1.66. London Brent crude was down 26 cents at $65.66.
"If it wasn't for an expected OPEC cut, there is a strong possibility that oil prices would be falling a lot more considering how poorly Asian stocks are performing," said David Moore, a commodities strategist at the Commonwealth Bank of Australia.
OPEC ministers said on Thursday they had agreed they must cut output, but had not decided by how much.
