* Equities rally, then pare gains, pull oil prices back
* Weaker U.S. dollar helped boost oil early
* Coming up: API oil data 4:30 p.m. EDT Wednesday
(Recasts, updates prices, market activity, changes byline, moves dateline from previous LONDON)
By Robert Gibbons
NEW YORK, July 6 (Reuters) - U.S. oil prices slipped on Tuesday, giving up earlier gains as it seesawed with equities as both markets sought to break a string of declining sessions.
"The S&P 500 fell back from its highs and that caused crude to pull back and sell stops were triggered below $73 a barrel," said Robert Yawger, senior vice president, energy futures at MF Global in New York
U.S. crude for August delivery <CLc1> fell 30 cents, or 0.42 percent, to $71.84 a barrel by 1:22 p.m EDT (1722 GMT), retreating from a $73.86 intraday peak and having earlier fallen as low as $71.09, its lowest level in over a month.
ICE Brent crude for August <LCOc1> fell 7 cents to $71.40, slipping from its peak of $73.28.
The earlier U.S. oil price jump above $73 a barrel was a bounce after five straight sessions of declines amid rallying equities and positive macroeconomic data.
Global stocks bounced from six- and seven-week lows. [] MSCI's all-country world stock index <.MIWD00000PUS> rose more than 1 percent.
U.S. markets reopened on Tuesday after an Independence Day holiday and stocks rose broadly following five days of losses. [] Stocks were lifted by a report showing the services sector grew a sixth straight month in June and on signs of strength in Europe's banking system supported U.S. equities.
The U.S. non-manufacturing sector grew in June. But the rate of growth slowed more than expected and hit its lowest since February, according to the report from the Institute for Supply Management. []
The dollar weakened broadly <.DXY> on Tuesday and extended losses after the report showed service sector growth, but slower growth than expected. []
The weak dollar usually supports oil prices because it makes it less expensive for buyers of dollar-denominated oil using other currencies. A weaker dollar also lowers the value of currency oil producers receive for the commodity.
TRYING TO REBOUND FROM SWOON
Oil prices were attempting to rebound on Tuesday after weak U.S. employment numbers and disappointing manufacturing data from both the United States and China helped oil prices on Friday to finish down 8.5 percent from the previous week.
The disappointing data fanned fears of stagnate world economic recovery and curbed investors' risk appetite for oil.
"While we've seen prices bounce from the recent lows, the move back up is still treacherous as there is still no clear sign yet that the bottom in the current market has been reached," said Phil Flynn, analyst at PFGBest Research in Chicago. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
Poll: Outlook for global supply and demand []
Reuters Insider: http://link.reuters.com/vud95m
Graphic: performance across commodity markets
http://link.reuters.com/hun72k <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
After Hurricane Alex swept into Mexico last week, oil traders on Tuesday eyed a low pressure system that the U.S. National Hurricane Center said had a 30 percent chance of developing into a tropical depression as it moves northwest toward Mexico's Yucatan peninsula. []
The weekly oil inventory report from the American Petroleum Institute will be delayed to Wednesday due to Monday's U.S. holiday and government statistics from the Energy Information Administration will be published on Thursday. (Additional reporting by Emma Farge in London and Alejandro Barbajosa in Singapore; Editing by Marguerita Choy)
