* U.S. fuel stockpiles post surprise gains -EIA
* For a technical view, click: []
* Coming Up: Euro zone manufacturing PMI for June; 0758
GMT
(Adds China PMI graphic, Chinese demand context, updates
prices)
By Alejandro Barbajosa
SINGAPORE, July 1 (Reuters) - Oil fell for a fourth
straight day on Thursday, shedding 1.7 percent toward $74, on
signs that China's economic growth was slowing, raising
concerns about energy demand.
The pace of manufacturing growth in the world's second
largest oil consumer slowed in June as government steps to cool
the property market and curb bank lending combined with a
faltering global recovery. []
The China data, and Moody's decision on Wednesday to put
Spain's credit ratings under review, got broader markets off to
a weak start for the new quarter, with Japanese stocks sliding
to a seven-month low, China's to a 15-month trough and the
dollar <.DXY> rising 0.2 percent against a basket of
currencies. []
"Market confidence remains very fragile and people are
concerned about the risks to the international economic
recovery," said David Moore, an analyst at the Commonwealth
Bank of Australia.
"Most of the equity markets seem to be opening lower so
that is probably not helping oil."
U.S. crude for August delivery <CLc1> fell $1.23 to $74.42
a barrel by 0740 GMT, extending the 10 percent slide of the
second quarter, the first quarterly drop since 2008.
ICE Brent <LCOc1> fell 1.43 on Thursday to $73.58.
China's official purchasing managers' index (PMI) fell to a
weaker-than-expected 52.1 in June, the lowest since February,
from 53.9 in May. Still, the indicator remained above the 50
threshold that indicates an expansion.
For a graphic of China's PMI versus crude prices:
http://graphics.thomsonreuters.com/10/CN_OILPMI0710.gif
China is the top contributor to demand growth from emerging
economies.
US SUPPLIES, JOBS REPORTS
Adding to negative sentiment on demand, U.S. fuel
stockpiles posted surprise gains last week, government
statistics showed on Wednesday, raising doubts about the speed
of consumption recovery in the world's top consumer. []
The nation's crude stockpiles fell 2 million barrels in the
week to June 25, compared to expectations for a decline of
900,000 barrels. Cushing, Oklahoma, crude supplies shed 795,000
barrels to 36 million barrels.
The recent slip from record high storage at the Cushing hub
has helped narrow the price spread between the front-month and
near-month U.S. crude contracts. The spread narrowed to 55
cents <CL-1=R> on Thursday, from $1.27 on Wednesday.
Traders were also looking to the nation's weekly jobless
claims later on Thursday and June's employment report on Friday
for further indications about the direction of the economy.
[]
"The data in the next two days is particularly important
and has the potential to move oil prices," Moore said.
Alex strengthened into a Category 2 hurricane in the Gulf
of Mexico on Wednesday and was due to hit the Mexican coast in
a few hours, but it stayed clear of oil fields, to the relief
of crude markets. []
The U.S. House of Representatives on Wednesday approved a
landmark overhaul of financial regulations but the Senate put
off action until mid-July, delaying a final victory for
President Barack Obama. []
(Editing by Clarence Fernandez)
