UPDATE 2-Oil creeps above $75, Greek worries weigh

                                
 * Atlantic weather system may turn into cyclone -NHC
                                
 * China regulator warns on 'slow' global economic recovery
                                
 * Coming Up: U.S. API oil inventory report; 2030 GMT
                                
 * For a technical view, click: [ID:nSGE65E005]
                                
 
                                
 (Updates throughout, changes dateline from SINGAPORE)
                                
 By Barbara Lewis
                                
 LONDON, June 15 (Reuters) - Oil edged above $75 on Tuesday,
clinging to slim gains after a Greek sovereign debt downgrade
underlined the extent of the euro-zone crisis.
                                
 U.S. crude futures had climbed to almost $76 a barrel on
Monday before paring gains after credit ratings agency Moody's
cut Greek sovereign debt by four notches to junk status.
[ID:nN14207740]
                                
 Spain also admitted the European financial crisis was
affecting the country's banks and foreign banks were refusing to
lend to some of them. [ID:nLDE65D0GJ]
                                
 Concerns about the wider implications for the global
economy, which would have knock-on effects for energy demand, 
left U.S. crude futures <CLc1> 22 cents higher at $75.34 a
barrel by 0845 GMT, compared with a 19-month peak above $87 hit
in early May.
                                
 Front-month European Brent <LCOc1> futures, which expire at
close of trade, rose by 12 cents to $75.32.
                                
 Analysts and traders said oil was struggling to shake off
the influence of global financial markets and nervousness about
investing in riskier assets.
                                
 "Today there is only one global market. There is a very high
correlation between oil and equities," said Olivier Jakob of
Petromatrix. "To break away from that correlation is going to
take something very significant."
                                
 The MSCI All-Country World Index <.MIWD00000PUS> edged 0.2
percent lower and the euro also retreated, reflecting the
anxiety about Greece and any knock-on effects. [ID:nLDE65E08G]
                                
 The depth of Europe's problems has raised the possibility
even Asian demand for fuel, long-regarded as an all-but
infallible driver of future consumption, could wane.
                                
 China's Banking Regulatory Commission (CBRC) said on Tuesday
the global economic recovery was likely to be "slow and
tortuous" and China faced risks from a multitude of factors
including trade protectionism and bad real estate loans.
[ID:nTOE65E02E]
                                
 
                                
 CHINA STILL ROBUST
                                
 Overall, demand from China, the world's second-largest
energy consumer, was expected to stay robust.
                                
 The Paris-based International Energy Agency said last week
in its monthly market report Chinese demand had grown by 12.7
percent in April year-on-year. [ID:nLDE6590N4]
                                
 Analysts trawling for bullish factors have also cited
forecasts the U.S. hurricane season, which runs until November,
will be particularly active [ID:nN2798815], with the potential
to disrupt oil infrastructure in the U.S. Gulf of Mexico and
making BP's <BP.L> efforts to contain the biggest oil spill in
U.S. history even harder.
                                
 The oil market was monitoring a weather system that the U.S.
National Hurricane Center said had a 40 percent chance of
becoming a tropical cyclone in the next 48 hours.
[ID:nN14216836]
                                
 For the next indication of supply and demand from the
world's biggest energy consumer the United States, traders will
be looking to industry data late on Tuesday and government
statistics on Wednesday.
                                
 A preliminary Reuters poll of analysts [EIA/S] predicted
crude inventories would have fallen by 1.4 million barrels in
the week to June 11.
                                
 Stores of refined products, however, were expected to have
increased. Distillate fuel, including heating oil and diesel,
was forecast to increase by 800,000 barrels and gasoline
inventories by 500,000 barrels.
 (Additional reporting by Alejandro Barbajosa; editing by Sue
Thomas)