UPDATE 9-Oil dips a fifth day on economic growth worries

                                
 * Japan Q2 GDP growth slower than expected, weighs on oil
                                
 * Weaker U.S. dollar limits oil's slip
                                
 * Coming up: API oil inventory data on Tuesday
                                
 (Recasts, updates with settlement prices, market activity)
                                
 By Robert Gibbons
                                
 NEW YORK, Aug 16 (Reuters) - Oil edged lower on Monday as
weak economic data from Japan and the United States fueled
concerns about slowing economic growth and tepid energy demand
that offset lift from a weaker dollar.
                                
 Oil futures' recent correlations were tested on Monday,
with a weaker dollar unable to lift oil and Wall Street's
intraday strength unable to push to a higher settlement.
                                
 U.S. crude for September <CLc1> delivery fell 15 cents to
settle at $75.24 a barrel. Crude dropped as low as $74.86, the
lowest since July 13. The early intraday peak was $75.95.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
                                
 Graphic on oil's correlations with stocks and the dollar:
                                
 http://link.reuters.com/wyq35n
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
                                
 Expiring September crude oil options on the New York
Mercantile Exchange may provide some volatility on Tuesday,
ahead of the crude oil contract's expiration on Friday.
                                
 On Monday, front-month ICE September Brent crude <LCOU0>
expired, falling 26 cents to go settle at $74.85 a barrel.
                                
 News that Japan's economy expanded by a mere 0.1 percent in
the second quarter, below forecasts, weighed on financial
markets and was followed later by weak U.S. data.
                                
 A gauge of manufacturing in New York state rose in August
but the reading was below expectations [ID:nN16254226] and U.S.
home-builder sentiment unexpectedly fell in August to its
lowest level in nearly 1-1/2 years. [ID:nN16205304]
                                
 U.S. Treasury prices rose, with the 10-year yield hitting a
fresh 17-month low and the price of the 30-year bond rising two
points as weak economic growth around the world spurred talk of
price deflation. [ID:nN16185405]
                                
 "U.S. treasuries were stronger and someone was going there
for little return, signaling concern about equities and also
consumption, which is bad for oil," said Richard Ilczyszyn,
senior market strategist at Lind-Waldock in Chicago.
                                
 U.S. stocks ended mixed, as investors found little reason
to buy, suggesting the recent slide has not left institutions
believing equities have become attractive. [.N]
                                
 Oil trading was choppy, volume was low and the range
relatively narrow. Crude trading volume on the NYMEX was just
over 400,000 Monday afternoon in New York, the lowest since
July 26, when crude also seesawed and ended unchanged.
                                
 Trading volume was above 800,000 several days last week as
prices plummeted, with industry sources noting that a 6 percent
slide like last week's is often amid high volume as traders
liquidate length and new short positions are taken.
                                
 RISING FUEL INVENTORIES
                                
 Weak economic data and rising U.S. fuel inventories, ample
crude stocks and tepid demand have made investors pessimistic
about the outlook for oil demand.
                                
 Rising gasoline stockpiles have sent U.S. gasoline futures
lower, and rising inventories also have pressured benchmark
distillate heating oil futures. Both were below $2 a gallon.
                                
 "Nowhere across the complex has this fundamental
deterioration been more evident than within the gasoline
market," Jim Ritterbusch, president at Ritterbusch & Associates
in Galena, Illinois said in a note.
                                
 "Gasoline stocks have increased about 4 million barrels
since the beginning of July, a contrast to seasonal tendencies
that have historically favored a 5-6 million barrel stock
draw."
                                
 Crude oil and gasoline stocks were expected to have fallen
last week, by 1.1 million and 200,000 barrels, respectively, a
preliminary Reuters survey of analysts showed on Monday.
Distillate stocks were expected to be up. [EIA/S]
                                
 In addition to economic indicators and oil stockpiles, oil
traders also continued to eye tropical weather threats. The
remnants of Tropical Depression 5 strengthened in the Gulf of
Mexico and had a 60 percent chance of redeveloping into a
tropical depression over the next 48 hours, the U.S. National
Hurricane Center said on Monday. [ID:nN16166764]
                                
 But producers had not cut back production ahead of the
weather threat on Monday. [ID:nN16259290]
 (Additional reporting by Alex Lawler in London and Alejandro
Barbajosa in Singapore, graphic by David Turner; Editing by
Marguerita Choy)