UPDATE 2-Oil slips to midpoint of recent range on econ worries

                                
   * Hurricane Center lowers probability of storm formation
                                
 * Coming Up: US existing home sales for June; 1400 GMT
                                
 * For a technical view, click: [ID:nSGE66L00N]
 (Updates prices)
                                
 By Alejandro Barbajosa
                                
 SINGAPORE, July 22 (Reuters) - Oil slid for a second day on
Thursday, a day after Fed chief Ben Bernanke rekindled unease
across financial markets over the pace of economic recovery,
while rising U.S. inventories also kept prices in check.
                                
 Bernanke's comment that the prospects for the U.S. economy
were "unusually uncertain" in testimony to lawmakers on
Wednesday sent crude prices back down to the middle of a tight
trading range of less than $5 over the past two weeks, after
touching a July peak above $78.50 a barrel earlier in the day.
                                
 U.S. crude for September <CLc1> declined as much as 40
cents to $76.16 and was down 23 cents at $76.33 by 0647 GMT,
while ICE Brent <LCOc1> shed 22 cents to $75.15.
                                
 "Unusual uncertainty means the market cannot have solid
confidence of economic recovery," said Ken Hasegawa, a
commodity derivatives manager at brokerage Newedge in Japan.
                                
 Bernanke faces another round of testimony on the economy to
U.S. lawmakers on Thursday.
                                
 Asian stocks slipped and the yen rose on Thursday ahead of
European bank stress tests. The results of the European Union
examination of banks are due on Friday and are expected to show
generally positive results for Greece, Italy and Ireland and a
few failures in Portugal and Spain. [ID:nLDE66J0GP]
                                
 "The crude oil market is waiting to go higher to $80, $85
and $90, but it still needs time," Hasegawa said. "Everyone
understands that the (U.S.) inventory level is relatively high.
That is one of the bearish factors that may be capping it
down."
                                
 INVENTORIES RISE
                                
 U.S. crude stockpiles rose 360,000 barrels in the week to
July 16, government statistics from the Energy Information
Administration showed on Wednesday, against a forecast for a
drop of 1.4 million barrels. [EIA/S]
                                
 Rising crude imports helped offset an increase in refinery
capacity utilization. Higher refinery use boosted gasoline
inventories 1.1 million barrels, more than a forecast gain of
900,000 barrels. Distillate stocks jumped up 3.9 million
barrels, more than double the expected rise.
                                
 Shell Oil Co <RDSa.L> began pulling nonessential workers
from eastern Gulf of Mexico oil and natural gas operations on
Wednesday due to the threat of a possible tropical storm that
may emerge by the weekend, the company said. [ID:nN21144118]
                                
 But an updated forecast that cut the chances of a storm
developing also dampened crude prices.
                                
 The U.S. National Hurricane Center said on Thursday a
weather system hovering over the Bahamas, eastern Cuba and
Hispaniola had a 40 percent chance of becoming a tropical
cyclone in the next two days, down from as high as 70 percent
on Wednesday. [ID:nN21130863]
                                
 Storms in the region can follow a westward path towards the
oil-rich Gulf of Mexico.
                                
 "It is possible that some supply disruption due to a
hurricane would be a supportive factor," Hasegawa said.
 (Editing by Ed Lane)