Oil prices fell further in Asian trade as Hurricane Ophelia was downgraded to a tropical storm and on signs of slowing energy demand globally, dealers said. At 12.30 pm (0430 GMT), New York's main contract, light sweet crude for delivery in October was 14 cents lower at 63.20 usd a barrel from its close of 63.34 in the US overnight. "Ophelia is no longer a major danger" to US oil facilities in the Gulf of Mexico, Investec analyst Bruce Evers said. Dealers said the market was beginning to focus on the possibility of weaker demand in response to the surge in prices triggered by Hurricane Katrina on Aug 29. "The world needed to cut back on consumption ... I think Katrina gave us a psychological shock to the system," said Tony Nunan, manager for energy risk management with Mitsubishi Corp's international petroleum business in Tokyo. "It did what (high) prices alone could not do," he said. Prices were falling also after the International Energy Agency said demand strains on the world oil market may be abating, dealers said. The IEA on Friday said the total world supply situation in August was 2 mln barrels a day above the figure 12 months earlier. In addition, production by members of the Organisation of the Petroleum Exporting Countries (OPEC) had risen by 750,000 barrels a day on a 12-month comparison. On Aug 30, the day after Katrina battered US oil facilities on the Gulf Coast, New York's main oil contract hit a high of 70.85 usd, while in London Brent peaked at 68.89 usd, prompting several countries led by the US to draw on their strategic oil reserves.