UPDATE 10-Oil slips 1 percent on recovery jitters

                                
 * U.S. stocks fall, following losses in Europe, Asia
                                
 * Japan pulls out of recession, but outlook shaky
                                
 * Eye on Hurricane Bill in Caribbean
                                
 (Updates prices at settlement, adds EIA poll)
                                
 By Edward McAllister
                                
 NEW YORK, Aug 17 (Reuters) - Oil slipped 1 percent to below
$67 a barrel on Monday as investors became more cautious about
the pace of global economic recovery and a potential revival in
energy demand.
                                
 U.S. equities fell broadly, pressured by persistent concern
for the global economy, with data from Japan, the third largest
oil consumer, showing that economic recovery may be shaky.
[ID:nT212505] [.N]
                                
 U.S. crude oil futures <CLc1> for September settled down
76 cents at $66.75 after earlier falling to $65.23, the lowest
since July 31. Brent crude <LCOc1> for October settled down 90
cents at $70.54
                                
 The decline added to the market's $3.01, or 4.3 percent
slide on Friday -- the biggest loss since July 29 -- after the
Reuters/University of Michigan Survey of Consumers showed
confidence in early August dropped.
                                
 "Crude futures are down, following the stock markets. It
looks like the economic optimism that we saw last week was
overplayed as we saw a big bank fail and the market turned
nervous on consumer confidence data," said Phil Flynn, analyst
at PFGBest Research in Chicago.
                                
 The U.S. dollar rose against a basket of currencies as
investors sought a safe haven away from commodities. U.S. stock
losses followed on from losses in Europe and Asia. [.EU]
                                
 U.S. stocks slid lower, despite a gauge of manufacturing in
New York state moved into positive territory in August,
suggesting growth in the sector for the first time since April
2008. [ID:nN17369652]
                                
 Japan's economy emerged from its longest recession in at
least 60 years in the second quarter, but analysts said it
would be a long road to a sustained recovery in the world's
third-largest oil consumer. [ID:nT212505]
                                
 Although the Atlantic hurricane season, which can disrupt
Gulf of Mexico oil and gas production, has arrived, analysts
said brimming crude stockpiles in the United States would limit
the impact of a storm on oil prices.
                                
 Hurricane Bill, the first of this season, is expected to
strengthen to a major category 3 hurricane by Wednesday,
possibly reaching the area of Bermuda early on Saturday, the
U.S. National Hurricane Center said. [ID:nN17358071]
                                
 Tropical storm Claudette was downgraded to a tropical
depression over southern Alabama, and tropical depression Ana
was on a track that could take it into the Gulf of Mexico by
the end of the week.
                                
 Ahead of weekly U.S. inventory data on Tuesday from the
American Petroleum Institute and Wednesday from the EIA, a
Reuters poll of analysts showed that crude stocks were expected
to have risen last week by 1 million barrels. Distillate stocks
were seen up 400,000 barrels and gasoline stocks down 1.4
million barrels. [EIA/S]
 (Reporting by Gene Ramos and Robert Gibbons in New York, Alex
Lawler in London and Fayen Wong in Perth; Editing by Lisa
Shumaker)