Oil steady near 1-month low

Crude was steady near a one-month low on Tuesday on signs of a withering global economic recovery, following disappointing data from the United States and Japan, the world's largest and third-largest oil consumers.
Optimism by U.S. home builders hit a near 1- year low in August and a regional manufacturing gauge grew more slowly than expected, according to Monday reports, after data showing Japan's economic growth slowed to a crawl in the second quarter.
"We are worried that some people are saying there is a 25 percent chance of a double-dip recession, and some people are talking about deflation," said Peter McGuire, managing director at CWA Global Markets in Sydney.
"The growth from mature markets isn't there. We are very conscious that China can't save the day. I believe it's going to be a flat market for the next week or two unless we have a hurricane."
U.S. crude for September delivery added 1 cent to $75.25 a barrel at 0412 GMT, while October ICE Brent fell 6 cents to $75.57. The front-month U.S. contract touched an intraday one-month low of $74.86 on Monday, when prices posted a fifth straight drop.
Falling equities continued to exert pressure on the crude market. Japan's Nikkei average slid 0.7 percent on Tuesday to within sight of last week's 13-month low.
But a drop of almost 0.2 percent in the dollar's value against a basket of currencies on Tuesday prevented crude prices from falling further, as a weaker greenback renders oil imports cheaper for holders of other currencies.
LACKLUSTRE GASOLINE SEASON
The economic slowdown has raised doubts that demand growth from China, the world's second-biggest oil user, will revive a rangebound crude market. And forecasts ahead of weekly U.S. petroleum inventory reports are for gasoline stockpiles to have remained little changed last week. <EIA/S>
"As you approach this time in the Northern Hemisphere, the driving season is abating, so I don't see that the demand for gasoline will be heavy," McGuire said.
The American Petroleum Institute will publish industry statistics late on Tuesday, followed by government data from the Energy Information Administration on Wednesday.
Gasoline stockpiles were forecast to have declined by just 200,000 barrels last week, a Reuters survey showed, while supplies of distillate fuel including diesel were expected to have gained 1.3 million barrels. Crude inventories probably fell 1.1 million barrels, according to the poll.
U.S. demand for gasoline peaks in the so-called driving season from late May to early September as holidaymakers take to the roads. But stockpiles this year have increased for most of that period, bucking a seasonal trend of drops.
In addition to economic indicators and oil stockpiles, traders also continued to eye weather conditions.
The remnants of Tropical Depression 5 strengthened in the Gulf of Mexico and had a 60 percent chance of redeveloping into a tropical depression over the next 48 hours, the U.S. National Hurricane Center said late on Monday.
But producers had on Monday not cut back production ahead of the weather event.
Expiring September crude oil options on the New York Mercantile Exchange may provide some volatility on Tuesday, ahead of the crude oil contract's expiration on Friday.