LONDON, Oct 31: Oil prices fell heavily again on Friday as the prospect of a global recession and weakening energy demand weighed on the market, analysts said.

New York’s main contract, light sweet crude for December delivery shed $1.46 to $64.50 per barrel.

London’s Brent North Sea crude for December lost $1.64 to $62.07.

Prices had fallen on Thursday after data showed that the US economy -- the biggest consumer of energy in the world -- contracted in the third quarter.

The market was also hit by news that the US government’s Energy Information Administration (EIA) downgraded its August estimate for US oil demand.

“Sentiment turned bearish (negative) as the government figures revealed that the US economy shrank,” said analysts at the John Hall Associates consultancy in London.

“Weakening demand remains the key driver with the release of monthly data for August revealing that US demand ran well below year-ago levels.”

“Crude futures were lower (on Friday), under pressure from renewed demand concerns ... after the EIA revised down its August US oil demand estimate by 8.4 per cent year-on-year ... its worse reading since 2001,” said Sucden analyst Nimit Khamar.

Prices have been under pressure as tumbling stock markets and recession fears darkened the outlook for energy demand.

Prices on Monday hit $59.02 in London and $61.30 in New York -- the lowest levels for around 17 months -- and are down more than 50 per cent since July’s record highs above $147.

The market rose briefly on Wednesday after interest rate cuts in the United States and China boosted expectations of higher demand in the world’s two leading energy consumers.

Prices also found limited support after the Opec crude producers’ cartel warned it could cut output further.—AFP