Oil tumbles below $76 on U.S. economic data

NEW YORK (Reuters) - Oil tumbled below $76 a barrel on Friday, dragged down as U.S. economic data fell below expectations and helped send stock markets down again.

U.S. oil CLc1 fell $1.00 to $75.86 a barrel by 1:58 p.m. EDT after hitting a record $78.77 on Wednesday. London Brent LCOc1 slipped 72 cents to $75.04.

U.S. stocks fell on Friday after a report showing weaker-than-expected job growth last month was followed by a report of slowing service-sector growth, rattling investors already nervous about losses in the mortgage industry. .N

The U.S. service sector grew much more slowly in July, according to a report by the Institute for Supply Management.

"Crude futures are down as the stock markets are selling off a little bit because the latest U.S. unemployment numbers are weaker than expected," said Phil Flynn, analyst at Alaron Trading. "It's Friday and people are also taking a little profit from the recent highs."

The losses came as Colorado State University trimmed its forecast for the 2007 Atlantic storm season on Friday and predicted 15 tropical storms, with eight growing to hurricane strength, including four major hurricanes.

The updated forecast was lower than the team's May 31 forecast for the six-month storm season that runs through November 30, which had predicted 17 tropical storms, nine hurricanes and five major hurricanes.

The formation of Atlantic storms this week reminded traders of the approaching peak of the hurricane season, but a tropical wave in the eastern Caribbean now appears less likely to become a cyclone.

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