* 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)
By Christopher Johnson
LONDON, June 1 (Reuters) - Oil slumped below $73 per barrel
on Tuesday after Chinese and European data raised concerns over
the pace of economic growth.
Manufacturing growth slowed across the globe in May as the
pace of new orders eased and uncertainty grew over what damage
Europe's debt crisis might do to the fragile economic recovery.
China's factories scaled back production last month and
slowed the pace of hiring, the purchasing managers' index (PMI)
showed. Manufacturing activity in the euro zone also expanded in
May at a considerably more sluggish pace than in April, another
survey showed. [] [] []
U.S. crude for July delivery <CLc1> dropped to a low of
$71.64 per barrel before rallying to around $72.80 by 1305 GMT,
down $1.17, after moving above $75 in early Asian trade.
U.S. crude had no oil futures settlement price on Monday
because of the U.S. Memorial Day holiday. 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 separates
expansion from contraction for the 15th consecutive month.
"The figures point to slower economic growth towards the end
of this year," said Eugen Weinberg, commodities analyst at
Commerzbank in Frankfurt. The fear is that Chinese officials
will tighten monetary policy and this will also dampen growth."
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 be affected by
restrictions on offshore drilling after the slick from BP's
<BP.L> stricken 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 almost 17 percent at one point, wiping
billions of dollars off the value of what was once Britain's
biggest company. []
The disaster 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 Keiron Henderson)
