* Dollar index rises, equities slip * Tropical Storm Hermine has not disrupted Gulf oil output * U.S. Conference Board job index falls in August (Updates prices, adds jobs index) By Dmitry Zhdannikov and Alex Lawler LONDON, Sept 7 (Reuters) - Oil fell by more than $1 to near $73 a barrel on Tuesday as the dollar strengthened and a gauge of the U.S. job market declined in August, underscoring concerns about the prospects for oil demand in the world's top consumer. The dollar was up 0.6 percent against a basket of currencies .DXY. A strong dollar can weigh on oil as it makes crude more expensive for other currency holders. European stocks fell and Wall Street was lower soon after the open. "Equities came off, the dollar is strong -- it's pretty much a knock-on effect," said Rob Montefusco, a trader at Sucden Financial. U.S. crude CLc1 fell $1.52 a barrel to $73.08 at 1408 GMT. Brent crude LCOc1 was down 66 cents from Monday's close to $76.21. There was no settlement price for U.S. crude on Monday because of the Labor Day holiday. The Conference Board, a private research group, said its Employment Trends Index fell to 96.7 in August from a revised 97.4 in July, signalling U.S. employment growth may continue to slow in coming months. Brent remained at an atypical premium to U.S. crude as brimming U.S. inventories weighed on the U.S. benchmark CL-LCO1=R. Physical crude markets in Europe are relatively strong in part because of a tight export programme for Russian crude Urals. European shares slipped on Tuesday, with banks down on renewed jitters about the health of the sector. Wall Street also got off to a weaker start. .N The Atlantic hurricane season runs from June 1 through Nov. 30 and is at its peak period. Traders watch out for storms because the Gulf is home to about 30 percent of U.S. oil output and more than 43 percent of refinery capacity. Tropical Storm Hermine formed early on Monday and made landfall in northern Mexico near the U.S. border, according to the U.S. National Hurricane Center. It has not disrupted crude oil and refinery output in Mexico and Texas. In the Atlantic, the remnants of Tropical Storm Gaston moved westward and had a medium chance of reforming as a tropical cyclone during the next 48 hours, according to the NHC. Monday marked the end of the U.S. driving season, the period when gasoline demand rises as people go on vacation. This, and high unemployment in the world's top consumer, raised concern about the outlook for demand. "Figures (from the United States) started to be a little better... But there is still no job creation, there is still a lot a debt around," Montefusco said. "The only pick up we are getting is coming out of Asia." (With additional reporting by Alejandro Barbajosa; Editing by Alison Birrane and Jane Baird)

Source