LONDON, Oct 27 (Reuters) - Oil trimmed losses after sinking to a new 17-month low below $62 a barrel on Monday, driven down by investor pessimism about the deteriorating global economic climate and its likely impact on demand for fuel.
U.S. light crude for December delivery was down 47 cents at $63.68 a barrel by 1409 GMT, after touching a 17-month low of $61.30 a barrel earlier in the session.
London Brent crude was 73 cents lower at $61.32.
Gloom about the world economy has had a greater impact than OPEC's deal on Friday to chop output by 1.5 million barrels per day to try to boost the oil market.
"What OPEC did is constructive, but right now that is beside the point," said Mike Wittner of Societe Generale.
Oil traders were watching for signs the Organization of the Petroleum Exporting Countries would implement its cuts.
Asian oil refiners said on Monday they had yet to receive notice of any curbs on their Gulf crude oil shipments, but most were expecting a 5 percent cut.
Iran's OPEC Governor Mohammad Ali Khatibi has said the group will reduce production further if the cut agreed in Vienna on Friday does not stabilise the market.
Oil prices have fallen by nearly 60 percent since they hit a record high above $147 a barrel in July.
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, for example, apparent oil demand rose by just over 2 percent in September, the slowest growth in 10 months.
Investors around the world are trying to find shelter, contributing to heavy losses on Asian and European stock markets, as well as other commodities such as gold and copper.
The volume of open contracts in energy, metals, grains and soft commodities on major U.S. commodity futures markets fell to its lowest since May 2006 in the week to Oct. 21, as the risk of recession has prompted some investors to pull out.
