* 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, analyst comment)
By Edward McAllister
NEW YORK, June 1 (Reuters) - Oil fell 1 percent toward $73
per barrel in choppy trade on Tuesday as the euro slid and
Chinese and European data raised concerns about the global
economy.
The euro fell to a four-year low against the dollar on
signs the euro zone's debt crisis is spreading to its banking
system. A stronger dollar weighed on crude, making it more
expensive to those using other currencies. []
U.S. equities were little changed. Wall Street erased
losses following data showing U.S. manufacturing expanded for a
10th straight month, but investors remained fearful of a
slowing economy. []
U.S. crude for July delivery <CLc1> fell 79 cents to $73.18
a barrel by 2:07 p.m. EDT (1807 GMT). ICE Brent crude for July
<LCOc1> fell $1.57 to $73.08 a barrel. Brent touched $68.15 a
week ago, the lowest intraday price for a front-month contract
since Feb. 5.
"Volatility is the central theme," said Gene McGillian,
analyst at Tradition Energy in Stamford, Connecticut. "Crude
hasn't shown the strength to stay above $75. The market is
waiting to see if the European contagion will spread."
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 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.
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. Expansion of manufacturing activity in the euro zone
also slowed sharply in May from the previous month, another
survey showed. [] [] []
"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."
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://link.reuters.com/hun72k
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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.
[]
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.
[]
(Additional reporting by Robert Gibbons in New York,
Christopher Johnson in London and Alejandro Barbajosa in
Singapore; Editing by David Gregorio)
