By Mark Shenk Oct. 27 (Bloomberg) -- Crude oil fell to a 17-month low in New York as plunging stock markets heightened concern that a global recession will slash fuel consumption. Oil, copper and gold led a drop in commodities, heading for the worst month in at least 38 years, on signs raw-material demand will decline. OPEC may make an additional output cut if its Oct. 24 decision to lower production fails to bolster prices, Agence France-Presse said, citing an interview Iran's OPEC representative Mohammad Ali Khatibi gave on state television. ``Everyone is watching stock-market tickers and not OPEC,'' said Michael Lynch, president of Strategic Energy & Economic Research in Winchester, Massachusetts. ``We want to see the full effect of the recession on demand and until that happens prices will trend lower.'' Crude oil for December delivery fell $1.23, or 1.9 percent, to $62.92 a barrel at 9:09 a.m. on the New York Mercantile Exchange. Futures touched $61.30, the lowest since May 9, 2007. Prices are down 31 percent from a year ago. ``With all of the stock markets going down, there's going to continue to be downward pressure,'' said Michael Fitzpatrick, vice president for energy risk management at MF Global Ltd. in New York. ``There's not a lot that can be done to stop this downward spiral right now.'' The S&P GSCI index of 24 raw materials fell 2.4 percent, extending its retreat this month to 33 percent, the most since at least 1970. Global oil demand may decline for the first time in 15 years in 2008 and stagnate next year, the Centre for Global Energy Studies said Oct. 20. OPEC, the International Energy Agency and the U.S. Energy Department all cut their forecasts for growth earlier this month. Brent crude oil for December settlement declined $1.17, or 1.9 percent, to $60.88 a barrel on London's ICE Futures Europe exchange. Futures touched $59.02, the lowest since Feb.22, 2007. To contact the reporter on this story: Mark Shenk in New York at mshenk1@bloomberg.net.

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