Oil drifts lower towards $67

London: Oil drifted lower towards $67 a barrel on Monday as traders shifted their focus back to slowing global energy demand linked to the financial crisis.

Analysts said traders would now be looking for signs that Saudi Arabia was cutting back its crude production in line with Opec's agreement last month to reduce output by 1.5 million barrels per day (bpd).

US crude was trading 36 cents lower at at $67.45 a barrel by 1218 GMT. London Brent crude was down by 63 cents at $64.66.

"Demand concerns haven't gone away so that's a factor that is weighing on the oil price this morning," said David Moore, a commodities strategist at the Commonwealth Bank of Australia.

US oil settled up $1.85, or 2.8 per cent, at $67.81 a barrel on Friday, but ended the month down more than 32 per cent, the steepest monthly decline ever, as global demand slows.

In three months, oil has wiped out gains that took more than a year to build.