UPDATE 7-Oil slips with equities on eonomic concerns

                                
 * Equities slip, dollar broadly stronger, weighing on oil
                                
 * No threat seen from Hurricanes Danielle and Earl
                                
 * Coming up: API weekly inventory data, 4:30 p.m. EDT Tues
                                
 (Recasts, updates with settlement prices, market activity)
                                
 By Robert Gibbons
                                
 NEW YORK, Aug 30 (Reuters) - Oil prices slipped on Monday
as investor unease about a stalled economic recovery weighed on
equities and energy markets and a slightly stronger dollar
helped oil break a string of three days of gains.
                                
 Investors were cautious ahead of a report on manufacturing
activity due on Wednesday from the Institute of Supply
Management and the ISM's report on the services sector on
Friday, when the government's closely watched August nonfarm
payrolls report also arrives.
                                
 U.S. crude for October delivery <CLc1> fell 47 cents, or
0.63 percent, to settle at $74.70 a barrel, after trading from
$74.17 to $75.58.
                                
 ICE Brent for October <LCOc1> fell 5 cents to settle at
$76.60 a barrel.
                                
 "The complex came under downside pressure at the start of
the week as it continues to spend much of its time trailing the
stock market and the euro to a lesser extent," Jim Ritterbusch,
president at Ritterbusch & Associates in Galena, Illinois, said
in a research note.
                                
 EQUITIES SHAKY
                                
 U.S. stocks fell as remarks from U.S. President Barack
Obama on the economy was not able to ease investor anxiety over
the slow pace of recovery. [.N]
                                
 Obama said he and his economic advisers are discussing
additional steps to generate job growth, such as more tax cuts
for businesses. [ID:nN30177410]
                                
 Neither oil nor equities markets received much support from
news that U.S. consumer spending rose in July. Incomes rose,
but less than expected. [ID:nN30166431]
                                
 The yen rose broadly after the Bank of Japan's decision to
expand loans to banks disappointed investors who had looked for
more aggressive measures to curb the yen's strength. But the
dollar index <.DXY> was stronger and the euro <EUR=> was weaker
versus the dollar, but in seesaw trading.
                                
 A stronger dollar can pressure oil prices because countries
using other currencies must pay more for dollar-denominated oil
while the currency producers are paid gains value.
                                
 U.S. oil inventories near record highs and lackluster
demand amid persistent unemployment helped send oil prices last
Wednesday to a $70.76 a barrel intraday low, the weakest since
front-month prices fell to $70.75 on June 8.
                                
 But oil futures ended the week with three higher
settlements, bouncing off technical support indicating an
oversold condition and receiving some lift on Friday from
Federal Reserve Chairman Ben Bernanke's speech saying that the
central bank was ready to act to help a faltering economy.
                                
 "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.
                                
 The U.S. Energy Information Administration revised its
estimate for U.S. oil demand in June lower, although demand was
still higher than year ago. [ID:nN30175306]
                                
 Ahead of the week's oil inventory reports from government
and industry, a preliminary Reuters survey of analysts on
Monday yielded a forecast for crude stocks to have risen last
week by 1.3 million barrels on higher imports. [EIA/S]
                                
 Distillate stocks, which include heating oil and diesel
fuel, were expected to be higher, while gasoline inventories
were seen slightly lower.
                                
 STORMS CHURNING
                                
 Oil markets continued to eye tropical weather systems in
the Atlantic. The U.S. National Hurricane Center was monitoring
three tropical systems in the Atlantic basin, but computer
models showed them steering clear of oil and gas producing
areas in the Gulf of Mexico. [ID:nN30177607]
(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. crude futures.
                                
 Brent's premium to U.S. crude <CL-LCO1=R> was at $1.90 at
settlement on Monday, after rising to more than $2 a barrel on
Friday, its highest since May, according to Reuters data.
[ID:nLDE67Q14H]
                                
 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)