LONDON, Oct 28: Oil prices dipped on Tuesday close to 17-month lows, erasing earlier gains despite a warning that Opec could slash output further in a bid to shore up the market.

Prices had tumbled on Monday on widespread concern that a global economic slowdown would significantly weaken demand for energy, analysts said.

New York’s main contract, light sweet crude for December delivery eased nine cents to $63.13 a barrel on Tuesday, after hitting $61.30 on Monday -- a level last seen in May 2007.

Brent North Sea crude for December slid 35 cents to $61.06. On Monday, the contract hit $59.02, its lowest point since February 2007.

Analysts at energy consultancy John Hall Associates said prices would likely head higher on speculation that Opec could cut back production levels further.

“Upward pressure may well stem from ... any reassessment of Opec’s decision last Friday to cut output,” they wrote in a note to clients.—AFP