* Equities slip, dollar broadly stronger, weighing on oil
* No threat from Hurricanes Danielle, Earl in Atlantic
* Coming up: API weekly inventory data, 4:30 p.m. EDT Tues
(Recasts, updates prices, market activity, new byline,
changes dateline from previous LONDON)
By Robert Gibbons
NEW YORK, Aug 30 (Reuters) - Oil prices slipped on Monday,
pulled down by investor unease about stalled economic recovery
and a slightly stronger dollar after oil posted three straight
higher settlements to end the week.
U.S. oil inventories near record highs and lackluster
demand amid persistent unemployment kept oil prices hemmed in
after receiving some lift on Friday from Federal Reserve
Chairman Ben Bernanke's speech saying that the central bank is
ready to act to bolster a faltering economic recovery.
The dollar index <.DXY>, measuring the greenback against a
basket of currencies, was slightly stronger and the euro <EUR=>
was weaker versus the dollar.
A stronger dollar can pressure crude prices because
countries using other currencies must pay more for
dollar-denominated oil and the currency producers are paid
gains value.
U.S. crude for October delivery <CLc1> fell 44 cents, or
0.59 percent, to $74.73 a barrel by 12:52 p.m. EDT (1652 GMT),
having traded from $74.17 to $75.58.
Prices last Wednesday fell to a $70.76 a barrel intraday
low, the weakest front-month crude price since the $70.75 low
struck on June 8.
On Monday, ICE Brent for October <LCOc1> dipped only 6
cents to $76.59 a barrel.
"We rallied last week when crude was oversold technically
and the factors that drove prices down below $71 are still
there. The fundamental picture is still weak, with inventories
near record levels and lackluster demand," said Gene McGillian,
analyst at Tradition Energy in Stamford, Connecticut.
EQUITIES MARKETS SHAKY
Global equities wavered on skepticism that governments can
cushion stalled global growth. []
U.S. stocks edged lower on Monday on sagging confidence
about the economy and investor caution ahead of several key
reports coming this week. []
Investors eyed a speech on the economy President Barack
Obama was set to give Monday and data due this week on
manufacturing and services before Friday's closely watched
report on August non-farm payrolls.
Neither oil nor equities markets garnered much support from
news that U.S. consumer spending rose in July at the strongest
pace in four months. Incomes rose, but less than expected.
[]
The government revised lower its estimate for U.S. oil
demand in June, although demand was above the year-ago level
even after being revised lower by the U.S. Energy Information
Administration. []
STORMS STILL CHURNING
Oil markets continued to eye tropical weather systems
churning in the Atlantic. The U.S. National Hurricane Center
continued to monitor three tropical systems in the Atlantic
basin, but computer models showed all three steering clear of
oil and gas producing areas in the Gulf of Mexico.
The NHC said a low pressure system in the central Atlantic
had a 90 percent chance of becoming Tropical Depression Eight
on Monday. Early computer models showed the system tracking on
a similar path to both hurricanes Danielle and Earl, moving
northwest and turning more northerly.
Hurricane Earl was expected to become a major Category 3
hurricane, but was expected to miss the Gulf of Mexico.
(http://www.reuters.com/subjects/hurricanes/hurricane-tracker)
A storm-related supply disruption might help to undo Brent
crude futures' unusual premium to U.S. futures, which have been
weighed down by the huge levels of U.S. inventories.
Brent's premium to U.S. crude <CL-LCO1=R> stood at about
$1.85 on Monday, after rising to more than $2 a barrel on
Friday, its highest point since May, according to Reuters data.
[]
Analysts have credited Brent's premium to U.S. crude to
high inventories in the United States, coupled with relatively
tight supplies of North Sea crude due to maintenance.
(Additional reporting by Gene Ramos in New York, Barbara Lewis
in London and Alejandro Barbajosa in Singapore; Editing by
Marguerita Choy)
