NYMEX-Crude dips on economy worry, high stockpiles

NEW YORK, Sept 2 (Reuters) - U.S. crude oil futures prices
slipped on Thursday, weighed by concerns about a slowing
economic recovery and high oil inventories in a cautious market
ahead of Friday's key August nonfarm payrolls report from the
United States.

Thursday's dip followed a 2.77 percent price jump on
Wednesday, fueled by encouraging manufacturing data from China
and the United States.

Crude futures pared losses initially after a government
report that new jobless benefit claims fell from the prior
week. Initial jobless claims fell to 472,000 in the week to
Aug. 28, the Labor Department said, down from a revised higher
478,000 the previous week. [ID:nN02234404]

Oil prices fell despite a weaker dollar, which is usually
supportive to crude prices, and also higher equities markets
and several tropical weather systems churning in the Atlantic.

FUNDAMENTALS

* On the New York Mercantile Exchange, October crude CLV0
fell 45 cents, or 0.6 percent, to $73.46 a barrel by 9:18 a.m.
EDT (1318 GMT), trading from $73.11 to $74.19.

* The European Central Bank held interest rates at a record
low, and is expected to keep its liquidity safety net for banks
in place as well amid a lopsided recovery and worries about
vulnerable banks. [ID:nLDE6810DM]

* Iran has increased production of crude from its Hengam
offshore oilfield to 10,000 barrels per day, Oil Minister
Massoud Mirkazemi told state television. [ID:nHAF538280]

* Tropical Storm Gaston on Thursday was churning west in
the Atlantic on a path that could take it into the Caribbean
Sea. Gaston was expected to strengthen gradually over the next
48 hours and could become a hurricane by Sunday or Monday, the
U.S. National Hurricane Center said. [ID:nN02164129]

* Hurricane Earl, located about 355 miles south of Cape
Hatteras, North Carolina, remained a powerful Category Four
storm. Though not forecast to make a U.S. landfall, it was
expected to pass within 100 miles of North Carolina's Outer
Banks barrier islands late Thursday or early Friday.

MARKETS NEWS

* U.S. stock index futures edged higher after the
first-time claims for jobless benefits report. [.N]

* The euro rose versus the dollar in the aftermath of
comments from European Central Bank President Jean-Claude
Trichet. [USD/] For highlights of Trichet's comments, see
[ID:nECBNEWS] The dollar index .DXY was weaker.

* World stocks scaled a two-week peak on optimism from
strong U.S. and Chinese manufacturing data. [MKTS/GLOB]

* Gold rose towards $1,250 an ounce ahead of U.S. data
[GOL/]

UPCOMING DATA/EVENTS

* Commerce Department reports July factory orders at 10
a.m. EDT (1400 GMT). Economists surveyed by Reuters forecast a
0.3 percent increase after June's 1.2 percent drop.

* National Association of Realtors issues pending home
sales for August at 10 a.m. EDT (1400 GMT). Economists in a
Reuters survey predicted a 1 percent drop after June's 2.6
percent fall.

* EIA reports natural gas inventories at 10:30 a.m. EDT
(1430 GMT). Analysts surveyed by Reuters forecast rise of 53
billion cubic feet.

* U.S. August nonfarm payrolls data on Friday at 8:30 a.m.
EDT (1230 GMT).
9:18 LAST NET PCT LOW HIGH CURRENT DAY AGO

CHNG CHNG VOL VOL
CLc1 73.46 -0.45 -0.6% 73.11 74.19 74,462 469,412
CLc2 74.80 -0.56 -0.7% 74.45 75.45 36,411 180,764
LCOc1 75.50 -0.85 -1.1% 75.21 76.35 57,203 159,766
RBc1 1.8827 -0.0064 -0.3% 1.8737 1.8987 6,560 12,468
RBc2 1.8859 -0.0091 -0.5% 1.8772 1.9021 2,992 52,596
HOc1 2.0207 -0.0204 -1.0% 2.0152 2.0419 6,778 12,399
HOc2 2.0447 -0.0188 -0.9% 2.0393 2.0658 2,089 72,666
* NYMEX crude oil for October CLc1 fell 45 cents to $73.46 a
barrel by 9:18 a.m. in volume of 74,480 lots.
(Reporting by Robert Gibbons; Editing by Walter Bagley)