U.S. crude drops $1 as economic concerns weigh

NEW YORK, Aug 30 (Reuters) - U.S. crude oil futures fell $1 on Monday amid investor unease and a slightly stronger dollar after oil posted three straight higher settlements to end last week.

U.S. stocks also slipped in early trading, shrugging off gains in consumer spending and income and a flurry of mergers-and-acquisition activity that failed to bolster confidence in the economy. [.N]

High oil inventories and tepid demand helped push crude oil prices below $71 a barrel intraday last Wednesday, lowest since early June. On Monday the U.S. Energy Information Administration revised downward its estimate of June oil demand, though it was still estimated to be up versus the year-ago period. [ID:nWNA8669]

On the New York Mercantile Exchange, October crude <CLV0> fell 76 cents, or 1.01 percent, to $74.41 a barrel by 10:40 a.m. EDT (1440 GMT), trading from $75.17 to $75.58. (Reporting by Robert Gibbons)