By Mark Shenk July 1 (Bloomberg) -- Crude oil fell for a fourth day amid concern economic growth in the U.S. and China will slow, curbing demand in the world’s two largest energy-consuming countries. Oil slipped as much as 1.9 percent after the Labor Department reported that more Americans applied for jobless benefits last week. China’s manufacturing expanded at a reduced pace for a second month in June, adding to signs the fastest- growing major economy is cooling, according to a survey. “The macroeconomic news of the last few days has been disappointing,” said Michael Lynch, president of Strategic Energy & Economic Research in Winchester, Massachusetts. “Concerns that we may have a double-dip recession are preeminent at the moment.” Crude oil for August delivery declined 85 cents, or 1.1 percent, to $74.78 a barrel at 9:02 a.m. on the New York Mercantile Exchange. The contract touched $74.21, the lowest level since June 14. Futures in New York are down 5.8 percent this year and lost 9.7 percent in the second quarter. The market is in its longest pullback since a six-day drop that ended on May 18. Brent crude for August delivery slipped 94 cents, or 1.3 percent, to $74.07 per barrel on the London-based ICE Futures Europe exchange. U.S. initial jobless claims increased by 13,000 to 472,000 in the week ended June 26, according to the department. Economists forecast applications would fall to 455,000 from an initially reported 457,000 for the prior week, according to the median of 46 projections in a Bloomberg survey. June Projection The Labor Department tomorrow may report payrolls fell by 125,000 in June, reflecting cuts in temporary census workers as the decennial survey nears completion, economists surveyed by Bloomberg forecast. Private payrolls, which are more revealing of labor-market conditions, probably rose by 110,000 after a 41,000 gain the prior month. “Everyone is waiting for tomorrow’s unemployment number,” said Dan Flynn, a trader at PFG Best in Chicago. “If it’s bad crude will head for $65. It all hinges on the report.” Crude stockpiles fell 2.01 million barrels last week to 363.1 million, partly on reduced imports, the Energy Department said. U.S. fuel consumption declined 2.7 percent to 19 million barrels a day, the lowest level since April, the report showed. --With assistance from Grant Smith in London. Editors: Joe Link, David Marino To contact the reporters on this story: Mark Shenk in New York at mshenk1@bloomberg.net. To contact the editor responsible for this story: Dan Stets at dstets@bloomberg.net.

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