UPDATE 1-Oil slips back below $67 after surge to 3-week high

                                
 * Late disappointing results could trigger Wall St fall
later
                                
 * US July consumer sentiment index reading due later
 (Updates lead, prices, quote)
                                
 By Jennifer Tan
                                
 SINGAPORE, July 24 (Reuters) - Oil eased below $67 a barrel
on Friday, reversing a near 3 percent surge to a three-week
high the previous day, after a few late U.S. corporate results
disappointed the market and dented initially bullish sentiment.
                                
 Strong results from companies like 3M & Co and AT&T Inc and
a rise in U.S. existing home sales in June gave a boost to the
idea that the U.S. economy is on the road to recovery, but
results from American Express, Microsoft Corp and Amazon.com
Inc after the bell were less positive. [.N]
                                
 Hopes that a recovery in the world's top energy consumer
would spark a rebound in oil demand have pushed crude prices up
15 percent since a two-month low hit in the middle of July.
                                
 However, Thursday's rise in U.S. jobless claims could
foreshadow a lethargic recovery, with the release of the final
July Reuters/University of Michigan consumer sentiment index
later on Friday offering the next clues.
                                
 U.S. crude oil for September delivery <CLc1> fell 17 cents
to $66.99 a barrel by 0205 GMT, after surging $1.76 to settle
at $67.16 a barrel on Thursday, the highest since July 1. Crude
is on track for a rise of about 5.4 percent so far this week.
                                
 London Brent crude <LCOc1> was down 19 cents to $69.06.
                                
 "The U.S. corporate reporting season is very important for
equity markets and increasingly, for commodity markets as well,
and so any results that disappointed the market will weigh on
oil prices," said Ben Westmore, commodity analyst with the
National Australia Bank in Melbourne.
                                
 In Asia, growing optimism about a U.S. economic rebound
helped Japan's Nikkei stock average <.N225> climb 1 percent on
Friday, but the index surrendered early gains after investors
locked in profits on fears the poor quarterly results might
trigger a fall in Wall Street shares later. [.T]
                                
 "Oil is probably going to start next week on a cautious
note, with Wall Street and U.S. macroeconomic data continuing
to be the driving factors," Westmore added.
                                
 Tetsu Emori, a fund manager at Tokyo-based Astmax Co Ltd.,
expects crude to trade in a range of $65-$70 next week.
                                
 At 1355 GMT, the Reuters/University of Michigan Surveys of
Consumers will release its final July consumer sentiment index.
Economists polled by Reuters expect a reading of 65.0 compared
with 70.8 in the final June report.
 (Editing by Michael Urquhart)