* 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)