UPDATE 2-U.S. crude falls below $74 on econ fears, stockpiles

                                
   * Asian stocks slide; yen rises near 15-year peak
                                
 * U.S. crude stocks expected to rise second straight week
                                
 * Coming Up: API weekly oil stocks data; 2030 GMT
 (Adds Japan data, updates prices)
                                
 By Florence Tan
                                
 SINGAPORE, Aug 31 (Reuters) - U.S. crude futures fell below
$74 on Tuesday, extending losses for a second day, as
expectations of higher crude inventories fed fears that a
slowdown in global economic growth was hitting demand.
                                
 Investors took profit on oil after equities slid on
skepticism that governments can boost growth, while the yen
clung near a 15-year high against the dollar. [MKTS/GLOB]
                                
 Japan's total oil product sales rose higher than expected
in July, but the outlook is gloomy as Tuesday's data showed
August manufacturing activity expanded at its slowest pace in
more than a year, suggesting that companies were starting to
feel the pinch from an export slowdown and a stronger yen.
[ID:nTOE67U04G] [ID:nTOE67U00F]
                                
 U.S. crude prices are meeting considerable resistance above
$75 due to concerns about the economy and high oil inventories,
Stefan Graber, Credit Suisse's commodities analyst, said in a
note. "For now, we expect further consolidation around $75."
                                
 U.S. crude for October delivery <CLc1> fell $1.07, or 1.4
percent, to $73.64 a barrel by 0714 GMT, after halting three
days of gains on Monday.
                                
 ICE Brent for October <LCOc1> fell $0.89 to $75.71 a
barrel.
                                
 U.S. President Barack Obama's Monday remarks on additional
steps to generate jobs growth and a rise in U.S. consumer
spending in July failed to lift oil and equities markets.
[ID:nN30177410] [ID:nN30166431]
                                
 CRUDE STOCKS TO RISE
                                
 Oil fundamentals in the United States, the world's largest
consumer, remained weak as stockpiles rose for the second time
in a row last week on higher imports, a preliminary Reuters
poll of analysts ahead of weekly inventory reports showed.
                                
 The average of 10 forecasts called for a 1.3-million-barrel
crude stock build in the week to Aug. 27, with eight analysts
expecting an increase. [EIA/S]
                                
 The Energy Information Administration revised down U.S. oil
demand in June, but consumption was still at its highest level
since October 2008. [ID:nN30175306]
                                
 "It has been a disappointing market for this summer," said
Keiichi Sano, general manager of research for SCM Securities in
Tokyo.
                                
 The crude market could have been stronger as supplies
usually tighten during the driving and hurricane seasons, he
said.
                                
 Three storm systems in the Atlantic basin were expected to
steer clear of key oil and gas-producing areas in the Gulf of
Mexico, the U.S. National Hurricane Center said on Monday.
[ID:nN30177607]
                                
 In Asia, the Singapore Mercantile Exchange debuted with
four contracts on Tuesday -- euro-dollar currency futures,
gold, West Texas Intermediate crude oil, and Brent crude priced
in euros. [ID:nSGE67T01F]
                                
 The SMX November WTI contract <SMCOc1> was traded at $73.96
a barrel by 0532 GMT, lower than the NYMEX equivalent, which
traded at $74.87 <CLc2>. December Brent <SMBTc2> was traded at
61.00 euros a barrel.
 (Editing by Clarence Fernandez)