Oil extends drop as dollar gains, eyes storms

Oil extended losses on Tuesday as the dollar strengthened and Tropical Storm Hermine showed no signs of disrupting crude or refining output around the Gulf of Mexico.
U.S. crude for October tumbled as much as 1.2% to $73.73 and was down 60 cents at $74 a barrel at 0255 GMT, having extended losses in a three-day session that will include trades logged on Sunday, Monday and Tuesday because of the U.S. Labor Day holiday.
The New York Mercantile Exchange, home to West Texas Intermediate (WTI) crude futures, will issue just one settlement for those three days.
The euro slid on Tuesday from a three-week peak against the dollar as worries about the European banking sector re-emerged, prompting investors to cut risks. The greenback was up 0.4% against a basket of currencies.
Front-month U.S. crude has for most of this year remained between $70 and $80, a range that OPEC says is high enough to foster investment in capacity expansion and low enough to sustain economic recovery.
A stronger dollar reduces the purchasing power of oil users outside the United States.
Asian stocks hovered near one-month highs on Tuesday as investors awaited a flood of Chinese data as early as this week, which is expected to show continued moderation in economic growth in August at the world's second-largest oil-consuming nation.
ICE Brent for October added 1 cent from Monday's close to $76.88, partly because of the de-phase caused by NYMEX's extended session.
Front-month Brent had gained 14 cents on Monday with demand improving in the North Sea physical market as refining margins widen amid expectations that consumption from emerging economies, led by Asia, will increase for the rest of the year.