UPDATE 8-Oil falls toward $73 as euro weakens

                                
 * Chinese PMIs point to moderating economic growth
                                
 * Euro zone manufacturing expansion slows sharply in May
                                
 * Euro falls against dollar, pressures crude
                                
 * Coming Up: API oil inventory report delayed to Wednesday
 (Recasts, updates prices, market activity; new byline, changes
dateline from previous LONDON)
                                
 By Edward McAllister
                                
 NEW YORK, June 1 (Reuters) - Oil fell nearly 1 percent
toward $73 per barrel on Tuesday as the euro slid and Chinese
and European data raised concerns about the global economy.
                                
 Pressure from a stronger euro erased a brief rally that had
followed strong U.S. construction spending data, which had
boosted equities.
                                
 U.S. crude for July delivery <CLc1> fell 64 cents to $73.33
a barrel by 12:20 p.m. EDT (1620 GMT). ICE Brent crude for July
<LCOc1> fell $1.31 to $73.34 a barrel. Brent touched $68.15 a
week ago, the lowest intraday price for a front-month contract
since Feb. 5.
                                
 "The euro pulled back from its highs and so did crude as
they react to positive U.S. economic data and the earlier less
positive data from China and Europe," said Stephen Schork,
president at the Schork Group in Villanova, Pennsylvania.
                                
 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.
                                
 The premium of Brent over NYMEX crude has narrowed in
recent sessions on increased supply in the North Sea, and as
concerns about the Euro zone economy pressured prices in
London.
                                
 The euro fell against the dollar and the yen, hitting a
four-year low, as signs the euro zone's debt crisis is
spreading to its banking system weighed on the single currency.
[USD/]
                                
 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. [ID:nLDE6500WD] [ID:nTOE65001Z]
[ID:nSLAVGE65K]
                                
 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 for the 15th consecutive month above the
threshold of 50 that separates expansion from contraction.
                                
 "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."
                                
 Wall Street stocks rose as U.S. construction spending
recorded its largest monthly increase in nearly 10 years and
U.S. manufacturing expanded in for a 10th straight month.
                                
 Crude rose briefly on the data, but slipped as a weaker
euro weighed on prices.
                                
 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.
                                
 <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
                                
 For a graphic of commodity prices so far this year:
 http://graphics.thomsonreuters.com/10/CMD_PRFG0510.html
                                
 ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
                                
 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.
[ID:nN31222759]
                                
 BP shares slid almost 17 percent at one point, wiping
billions of dollars off the value of what was once Britain's
biggest company. [ID:nN01262229]
                                
 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.
[ID:nN28181675]
 (Additional reporting by Robert Gibbons in New York,
Christopher Johnson in London and Alejandro Barbajosa in
Singapore; Editing by David Gregorio)