* U.S., China economic data weak, pressure oil
* US jobless claim rise, manufacturing slows
* China's manufacturing growth slows
* Coming up: U.S. June nonfarm payrolls on Friday
(Recasts, updates with settlement prices, market activity)
By Robert Gibbons
NEW YORK, July 1 (Reuters) - Oil fell more than 3 percent
to below $73 a barrel on Thursday, its biggest one-day slide in
nearly four weeks, as weak manufacturing data from China and
the United States fueled concerns about economic growth.
China's manufacturing in June grew at the slowest pace in
months on government actions to cool the property market and
curb bank lending. In the United States, the Institute for
Supply Management barometer of manufacturing activity fell much
more than expected to 56.2. [] []
U.S. crude for August delivery <CLc1> fell $2.68, or 3.54
percent, to settle at $72.95 a barrel, the lowest close since
June 8 and its biggest one-day percentage loss since June 4.
Falling in tandem with base metals, gold and equity
markets, oil prices declined for a fourth straight session. The
drop extended the 9.7 percent slide of the second quarter, the
first quarterly decline since 2008.
ICE Brent <LCOc1> fell $2.67 on Thursday to settle at
$72.34 a barrel.
"I think oil is reflecting general negative commodity
market sentiment after weaker-than-expected China PMI data
overnight," said Carsten Fritsch, oil analyst at Commerzbank in
Frankfurt.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
For a graphic on China's PMI versus crude prices:
http://link.reuters.com/duv35m
For a graphic on the performance across commodity markets
this year: http://link.reuters.com/hun72k
> Reuters Insider-China spooks oil market []
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
Markets fell early, after China's official purchasing
managers' index (PMI) fell to a weaker-than-expected 52.1 in
June, the lowest since February, from 53.9 in May.
The markets fell further after the U.S. government said
initial jobless claims unexpectedly rose last week. Markets
already were anxious about employment data ahead of the June
nonfarm payrolls report on Friday. A Reuters survey has
forecast a jobs loss of 110,000, the first decline of 2010.
The ISM report also disappointed markets, as did data
showing pending sales of previously owned U.S. homes plunged a
record 30 percent in May to an all-time low. The U.S. dollar
index <.DXY> fell 1.58 percent and the S&P 500 stocks index
<.SPX> fell 0.51 percent at 3:31 p.m. EDT (1931 GMT).
U.S. INVENTORIES
Oil prices retreated on Wednesday after the government
reported a surprise U.S. gasoline inventory rise last week.
[] Distillate stocks also rose more than forecast.
Crude stockpiles fell 2 million barrels, more than the
expected decline of 900,000 barrels, and the government report
showed Cushing, Oklahoma, crude stocks shed 795,000 barrels to
36 million barrels.
Energy provider Genscape said on Thursday that Cushing
stocks fell 285,000 in the week to Tuesday. []
The recent slip from record high storage at the Cushing hub
has helped narrow the price spread between the front-month and
near-month U.S. crude contracts <CL-1=R>, leaving it at 51
cents on Thursday, based on settlement prices.
After helping spark crude prices to above $79 on Monday,
Hurricane Alex made landfall in Mexico on Thursday, sparing
U.S. oil facilities near its path. []
Companies on Thursday were already restarting some of the
421,350 barrels per day of oil output, about a quarter of Gulf
of Mexico output, shut as a precaution. []
(Additional reporting by Gene Ramos in New York, Joe Brock in
London and Alejandro Barbajosa in Singapore; Editing by David
Gregorio)
