NYMEX-Crude edges further below $70, after fall on China

                                
 TOKYO, Sept 1 (Reuters) - U.S. crude futures fell further
below $70 a barrel on Tuesday, after sliding almost 4 percent the
previous day when fear of a curb in Chinese bank lending dented
optimism about an economic recovery and a pick-up in energy
demand.
                                
 FUNDAMENTALS
                                
 * NYMEX crude for October delivery <CLc1> was down 10 cents
at $69.86 a barrel by 0021 GMT, after settling down $2.78 on
Monday, as worries about the global economy's health grew after a
plunge in Chinese equities. [ID:nSYD487149]
                                
 China's key stock index dived 6.74 percent on Monday to a
three-month low, prompted by concern that China's government is
trying to moderate economic growth and choke off some speculation
in its stock market by tightening bank lending. [ID:nHKG364623]
                                
 * The Organization of the Petroleum Exporting Countries
(OPEC) next meets to consider oil output policy on Sept. 9 in
Vienna.
                                
 Bulging global oil inventories remain a major concern for
OPEC member states, even as signs of a possible global economic
recovery grow, and will likely be a topic at the gathering,
Iran's OPEC governor said on Monday. [ID:nLV193732]
                                
 * U.S. crude inventories likely fell 400,000 barrels last
week, a preliminary Reuters poll of analysts showed ahead of
weekly supply data. The poll showed that analysts think gasoline
stocks declined and distillate supplies increased. [EIA/S]
                                
 The American Petroleum Institute (API), an industry group,
will release its inventory report on later on Tuesday, while the
U.S. Energy Information Administration, a government
organisation, will release its own data on Wednesday.
                                
 MARKETS NEWS
                                
 * Japan's Nikkei average was down 0.2 percent on Tuesday,
with some exporters hurt by a stronger yen. [.T]
                                
 * The yen held firm on Tuesday, having hit seven-week highs
in the previous session, while high-yielding currencies like the
Australian and New Zealand dollars were also strong ahead of a
rate decision in Australia. [FRX/]
                                
 * The 19-commodity Reuters-Jefferies CRB index <.CRB>, a
barometer of the commodity sector for economists, fell 1.6
percent on Monday, as the slump in Chinese equities sparked
global economic jitters that caused sharp losses in most
commodities. [COM/WRAP]
                                
 DATA/EVENTS
                                
 * The following data is expected on Tuesday:
                                
 - ICSC/Goldman Sachs Weekly U.S. Chain Store Sales (1145 GMT)
                                
 - Redbook Weekly U.S. Retail Sales Index           (1255 GMT)
                                
 - U.S. Construction Spending for July              (1400 GMT)
                                
 - U.S. Pending Home Sales for July                 (1400 GMT)
                                
 - API Weekly National Petroleum Report             (2030 GMT)
                                
 RELATED NEWS
> Calif. gasoline demand rises in May yr/yr -state    [nN3168719]
> Brazil moves to boost control over new oil wealth  [nN31334035]
> US commodities rattled by China derivatives stance  [nPEK11832]
> Regional surveys show U.S. economy is picking up   [nN31380848]
                                
 PRICES
 Oil prices as of 0021 GMT          
 Contract Mnth    Price  Change  Day ago     pct     MA-20*
 NYMEX Contracts
 US Crude OCT9   $69.86   -0.10   -$2.78  -3.82%     $71.12
 Heat Oil OCT9   180.81   -0.04    -7.80  -4.13%     188.56
 RBOB     OCT9   181.31   +0.32    -9.00  -4.74%     201.55
 Natgas   OCT9   $2.966  -0.011  -$0.056  -1.85%     $3.270
 ICE Contracts
 Brent    OCT9   $69.54   -0.11   -$3.14  -4.31%     $73.03
 Gasoil   SEP9  $566.50   +3.75  -$34.00  -5.70%    $595.30
 Note: U.S. heating oil and RBOB gasoline contracts listed in
cents per gallon.
 * = 20-day moving average for continuation month.
 (Reporting by James Topham; Editing by Chris Gallagher)