ept. 1 (Bloomberg) -- Crude oil traded little changed near $70 a barrel on concern a slowdown in lending growth may derail a recovery in China, the world’s second-largest energy user. Oil fell 3.8 percent yesterday, the biggest decline in two weeks, as Chinese equities led a global slump following a report that the nation’s banks cut lending. China accounts for about a 10th of global crude oil use, according to BP Plc data. “Worries about China translated into weakness in commodity prices, including the oil price,” said David Moore, a commodity strategist at Commonwealth Bank of Australia Ltd. in Sydney. “China is such a big part of the commodities story.” Crude oil for October delivery was at $70.08 a barrel, up 12 cents, in after-hours electronic trading on the New York Mercantile Exchange at 9:18 a.m. Singapore time. Yesterday, the contract declined $2.78 to $69.96, the biggest drop since Aug. 14. Prices have increased 57 percent this year. The Shanghai Composite Index tumbled 6.7 percent yesterday after Beijing-based Caijing Magazine reported that new loan growth this month may be almost half that of July. The benchmark index has slumped 23 percent since Aug. 4, more than the 20 percent drop that is the common definition of a bear market. The Standard & Poor’s 500 Index lost 0.8 percent and the Dow Jones Industrial Average fell 0.5 percent. The MSCI World Index of the markets in 23 developed nations slid 0.8 percent. Crude Supply “Market supply is quite adequate to meet demand at the moment and that is one of the reasons why on a three-to-six month view we’ll see the oil price retrace somewhat,” Moore said. “By the end of the year we might be looking at an oil price in the low $60s.” An energy department report on Sept. 2 will probably show that U.S. crude-oil stockpiles declined last week, a Bloomberg News survey showed. Supplies likely dropped 500,000 barrels from 343.8 million the prior week, according to the median of eight analyst responses in the survey. Gasoline stockpiles probably fell 1.05 million barrels. Supplies of distillate fuel, including heating oil and diesel, probably increased 675,000 barrels, according to the survey. Inventories are near their highest since 1983. Heating oil for October delivery was at $1.8127 a gallon, up 0.42 cent, on the Nymex at 8:30 a.m. Singapore time. The September contract yesterday expired at $1.7792 a gallon in New York, the lowest settlement since July 30. Brent crude oil for October settlement was at $69.82 a barrel, up 17 cents, on the London-based ICE Futures Europe exchange at 9:22 a.m. Singapore time. The contract declined $3.14, or 4.3 percent, to end yesterday’s session at $69.65.

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