By Alexander Kwiatkowski June 2 (Bloomberg) -- Crude oil fell as equity markets dropped amid concerns about the strength of the global economic recovery and the euro traded near a three-year low against the dollar. Oil dropped for a third day as European and Asian stock markets fell. The Stoxx Europe 600 Index has slumped 10 percent from this year’s high amid concern that European nations may be unable to tame budget deficits without harming the economic recovery. “The macro-economic picture, of which the euro is a part, continues to be a strong influence on prices,” said Christopher Bellew, senior broker at Bache Commodities Ltd. in London. “The market tends to be very volatile although maintaining a broad range of $72 to $75 a barrel.” Crude oil for July delivery fell 32 cents, or 0.4 percent, to $72.26 a barrel on the New York Mercantile Exchange at 10:50 a.m. London time. The contract earlier declined as much as 1.2 percent to $71.68 a barrel. Oil lost 1.9 percent yesterday and fell 14 percent in May. The euro was at $1.2265 from $1.2229 yesterday, when it touched a more-than-three-year low of $1.2111. It earlier rose to 1.2263. The Stoxx Europe 600 Index declined 0.9 percent to 243.22. The MSCI Asia Pacific Index sank 1.1 percent. Brent crude oil for July settlement slipped 0.3 percent to $72.46 a barrel at 10:50 a.m. on the ICE Future Europe exchange in London. Yesterday, it lost $1.94, or 2.6 percent, to $72.71. Oil prices are “reasonable” and there is no shortage of supply, the United Arab Emirates oil minister, Mohamed al-Hamli, said today in an interview in Baku, Azerbaijan today. Inventory Report U.S. crude oil supplies probably fell last week for the first time since April, a Bloomberg News survey showed. Stockpiles dropped 500,000 barrels from 365.1 million barrels in the prior week, based on the median estimate of 11 analysts surveyed by Bloomberg. Oil supplies have grown in 16 of the past 17 weeks, falling only in the week ended April 9. Crude oil imports rose 1 percent to 9.93 million barrels a day in the week ended May 21. Gasoline inventories probably were little changed from the week before at 221.6 million barrels. Stockpiles of distillate fuel, a category that includes heating oil and diesel, climbed 250,000 barrels from 152.5 million, according to the survey. The Energy Department is scheduled to release its weekly report at 11 a.m. tomorrow, a day later than usual because of the Memorial Day holiday. To contact the reporters on this story: Alexander Kwiatkowski in London at akwiatkowsk2@bloomberg.net

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