* Chinese PMIs point to moderating economic growth
* Euro zone manufacturing PMI revised down vs flash estimate
* For a technical view, click: []
* Coming Up: U.S. construction spending for April 1400 GMT
(Updates detail, prices, comment)
By Christopher Johnson
LONDON, June 1 (Reuters) - Oil fell more than 3 percent to
below $72 on Tuesday, erasing early gains after Chinese and
European data raised concerns over the pace of economic growth.
China's factories scaled back production last month and
slowed the pace of hiring, the purchasing managers' index (PMI)
for May showed on Tuesday. []
Manufacturing activity in the euro zone also expanded in May
at a considerably more sluggish pace than in April, a survey
showed on Tuesday. []
U.S. crude for July delivery <CLc1> dropped to a low of
$71.64 per barrel before rallying a little to $71.97 by 1024
GMT, down $2.00, after moving above $75 in early Asian trade.
Trade was thin and there was no settlement price on Monday
because of the Memorial Day holiday in the United States. The
New York Mercantile Exchange will combine Monday's and Tuesday's
trading sessions into one.
ICE Brent crude for July <LCOc1> fell more than $3 to a low
of $71.51, down $3.14. It touched $68.15 a week ago, the lowest
intraday price for a front-month contract since Feb. 5.
China's PMI, an indicator of factory activity, compiled by
the China Federation of Logistics and Purchasing, fell to 53.9
in May from 55.7 in April, close to analysts forecasts of 54.0.
However, it stood above the threshold of 50 that demarcates
expansion from contraction for the 15th consecutive month.
"The Chinese figures were not as good as expected and
signals slowing growth later this year," said Eugen Weinberg,
commodities analyst at Commerzbank in Frankfurt.
"Yesterday's holiday is also having a bit of an impact on
the speed of the move as traders are closing off positions that
they could not trade out of over the long weekend," he added.
BP SLICK
U.S. crude posted its biggest monthly loss since 2008 in
May, losing almost 14 percent, after the European economic
crisis raised the prospect of reduced fuel demand.
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For a graphic of commodity prices so far this year:
http://graphics.thomsonreuters.com/10/CMD_PRFG0510.html
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Stock markets slid on Tuesday on suspicions that the peak in
the pace of recovery has passed and slowing growth in the second
half of the year will deter risky trades. [] []
Analysts say future oil supply could also be affected by
restrictions on offshore drilling after the slick from BP's
<BP.L> Gulf of Mexico well, the worst oil spill in U.S. history.
BP has begun a new attempt to contain the leak but the spill
may not be shut off until August, officials say. []
BP shares slid as much as 15 percent at one point, wiping 14
billion pounds ($20.4 billion) off the value of what was once
Britain's biggest company and taking total losses in market
capitalisation since April 20 to 44 billion pounds ($64.2
billion). []
The catastrophe has led the U.S. government to stop issuing
new exploratory drilling permits in deep water for six months
and declare a ban that effectively idles operations of 33
deepwater exploratory rigs for the same period. []
"The crisis is simply reinforcing investor perceptions that
the U.S. regulatory and safety environment will be much more
stringent going forward for oil companies operating in the
Gulf," brokers MF Global said in a note to clients.
(Additional reporting by Alejandro Barbajosa in Singapore;
editing by William Hardy and Sue Thomas)
