* Atlantic weather system may turn into cyclone -NHC
* China regulator warns of "slow" global economic recovery
* Coming Up: U.S. API oil inventory report; 2030 GMT
* For a technical view, click: []
(Recasts with falling prices)
By Alejandro Barbajosa
SINGAPORE, June 15 (Reuters) - Oil fell about 0.5 percent
to below $75 on Tuesday after China warned about risks to the
world economy, deepening concern about the impact of Europe's
debt crisis.
The global economic recovery is likely to be "slow and
tortuous" and China faces risks from a multitude of factors
including trade protectionism and bad real estate loans,
China's Banking Regulatory Commission (CBRC) said on Tuesday.
[]
The report added to other economic worries.
Spain admitted on Monday that the European financial crisis
is taking a toll on the country's banks, while credit ratings
agency Moody's slashed Greek sovereign debt by four notches to
junk status. []
U.S. crude for July <CLc1> fell 42 cents to $74.70 a
barrel at 0700 GMT, down 14 percent from a 19-month peak above
$87 in early May. ICE Brent for July <LCOc1>, which expires by
the close of trade on Tuesday, declined 31 cents to $74.89.
"Certainly Greece is a worry, and I worry about contagion
that could cause a double-dip recession," said Peter McGuire,
managing director of Commodity Warrants Australia in Sydney.
Asian stocks slipped on Tuesday, snapping a five-day
winning streak, while the dollar gained about 0.4 percent
against a basket of currencies, rendering oil imports more
expensive for emerging economies. [] <.DXY>
Greece's downgrade on Monday interrupted a global rally in
stocks triggered by data showing euro-zone industrial output
surged in April. Oil also pared gains, but still held onto a
1.8 percent increase by the settlement.
HURRICANE WATCH
Traders were also closely watching a weather system
currently in the middle of the Atlantic Ocean, which the U.S.
National Hurricane Center said has a 40 percent chance of
becoming a tropical cyclone in the next 48 hours.
The Atlantic hurricane season started at the beginning of
this month and lasts through November. Forecasters have said
the 2010 season will be more active than usual. []
Any major storm heading to the oil-producing Gulf of
Mexico, where BP is struggling to contain the largest oil spill
in U.S. history, could be a catalyst to propel oil prices above
$76.30, the four-week high reached on June 10 that chart
watchers identify as resistance, McGuire said.
Attention in the oil market was set to turn to weekly
inventory reports from top consumer the United States.
Crude oil inventories there probably dropped for the third
straight time last week due to lower imports, a preliminary
Reuters poll of analysts showed on Monday ahead of weekly
industry and government reports later this week. []
[]
On average, crude inventories were forecast to have fallen
1.4 million barrels in the week to June 11, the poll of eight
analysts showed.
Stockpiles of distillate fuel including heating oil and
diesel probably gained 800,000 barrels, while gasoline
inventories were expected to have increased by 500,000 barrels.
Industry group American Petroleum Institute will release
weekly inventory statistics on Tuesday at 2030 GMT, followed by
government data from the Energy Information Administration on
Wednesday at 1430 GMT.
(Editing by Ed Lane)
