Oil tumbled more than 3 percent to another 17-month low on Monday, extending deep losses amid growing doubts over whether world governments can tame a crisis that threatens to push the global economy into a deep recession.

The threat of shrinking oil demand overshadowed OPEC's quick deal on Friday to chop output by 1.5 million barrels per day, which some traders said would not be enough to arrest oil's slide of more than 56 percent from a record $147 a barrel in July.

Japan's Nikkei share index fell over 6 percent to touch its lowest since 1982 on Monday, as a record rate cut in South Korea and a G7 warning failed to soothe edgy traders.

U.S. light crude for December delivery fell $2.15 to $62 a barrel by 4 a.m. EDT, falling below Friday's intra-session trough of $62.65 a barrel on a renewed wave of selling as European share markets appeared set to follow Asia lower.

London Brent crude fell $2.35 cents to $59.70.

"I think OPEC has actually taken a fairly decisive step to cut production but the oil market is obviously just focusing on economic woes at the moment," said David Moore, a commodities strategist at the Commonwealth Bank of Australia.

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