* China crude oil imports slip in July, weighs on oil
* Dollar up, investors cautious awaiting Fed results
* Coming up: Fed meeting results, Tuesday 2:15 p.m. EDT
(Recasts, updates prices, market activity, changes byline
and moves dateline from previous LONDON)
NEW YORK, Aug 10 (Reuters) - Oil prices fell more than 1
percent and dropped below $80 a barrel on Tuesday as a slowdown
in China's crude oil imports and a stronger U.S. dollar
combined to pressure oil futures.
The dollar jumped more than 1 percent against a basket of
currencies <.DXY> as expectations of aggressive action by the
U.S. Federal Reserve gave way to the view that the Fed is
unlikely to announce any aggressive monetary easing measures at
the end of its policy meeting on Tuesday. []
The euro <EUR=> fell one percent against the dollar. A
stronger dollar can pressure oil prices because it increases
the value of payments for dollar-denominated commodities for
producers while making the commodity more expensive to those
using other currencies.
U.S. stocks dropped sharply as commodity equities were hit
by indications China's economic growth may be slowing and by
mounting uncertainty over what the Federal Reserve's assessment
of the U.S. economy will be. []
The S&P 500 <.SPX> dipped below its 200-day moving average,
with commodity and energy stocks as the biggest decliners on
the index.
U.S. crude for September <CLc1> delivery fell $1.12, or
1.37 percent, to $80.36 a barrel at 11:32 a.m EDT (1532 GMT),
having traded from $79.20 to $81.62. Front-month ICE Brent
crude <LCOc1> fell $1.39 to $79.60 a barrel.
"Crude and products futures tumbled this morning in
moderate overnight trading after a report showed Chinese import
growth is slowing and ahead of the latest policy statement by
the Federal Reserve," Addison Armstrong, analyst at Tradition
Energy in Stamford, Connecticut, said in a note.
CHINESE CRUDE OIL IMPORTS SLOW
Along with the dollar's strengthening, oil futures, like
the stock markets, were pressured by news of reduced Chinese
imports in July.
The world's second biggest energy consumer after the United
States imported 19 million tonnes or 4.47 million barrels per
day of crude in July, down 17.5 percent from June's record 5.4
million bpd, official data showed. []
In the same month, overall imports rose by 22.7 percent,
well short of forecasts, helping to drive down Chinese share
prices <> by 2.9 percent. [] European equity
markets also slumped. <.MIWD00000PUS>
Consistent demand growth in China has been a key as energy
use expectation as demand in developed markets has stalled.
"The news out of China that its oil imports fell last month
for the first time in 16 months depressed oil futures today.
There's really very little fundamentally that supports oil
staying above $80 a barrel at this point," said Mark Waggoner,
president of Excel Futures in Bend, Oregon.
FEDERAL RESERVE EYED
The Federal Reserve's monetary policy committee gathered
for a one-day meeting on Tuesday to consider, and perhaps
adopt, additional measures to prop up a softening U.S. economic
recovery. []
With U.S. interest rates effectively at zero, the central
bank does not have easy policy options. Top Fed officials have
argued, however, they can do more to fight renewed economic
weakness, including reinvesting proceeds from maturing mortgage
bonds back into that market.
An announcement from the Fed is expected at 2:15 p.m. EDT
(1815 GMT).
(Additional reporting by Gene Ramos in New York, Barbara Lewis
in London and Florence Tan in Singapore; Editing by Marguerita
Choy)
