UPDATE 7-Oil tumbles $3 on China slowdown concern, Fed plan
* Brent falls to one-week low near $103 a barrel
* China June flash HSBC PMI hits 9-month low
* Bernanke says Fed likely to reduce bond buying this year
(Updates prices, changes byline, dateline (pvs LONDON)
NEW YORK, June 20 (Reuters) - Brent crude oil futures slid $3 a barrel on Thursday to a one-week low near $103 a barrel, as investors sold commodities and equities on worries about a slowing Chinese economy and the U.S. Federal Reserve's plan to roll back its stimulus program.
China turned the screw on credit even as factory activity in the world's No. 2 oil consumer hit a nine-month low.
U.S. stocks fell 1 percent for a second day after Fed Chairman Ben Bernanke outlined the start of a wind-down of monetary stimulus that has helped feed the market's rally.
Brent crude fell $3.12 to $103.01 a barrel by 11:27 a.m. EDT (1527 GMT), set for its steepest daily drop since April 3. Brent's session low of $102.58 was the lowest intra-day price since June 12.
U.S. oil declined $2.84 to $95.40, set for its largest daily decline since November 2012.
"Because the oil market is physically oversupplied, you simply do not have the physical tightness to limit the downside during periods when investors are running away," said Tim Evans, energy specialist at Citi Future Perspectives.
"The oil market had some support from a falling U.S. dollar and a buoyant equity market that had made it seem as though economic growth would sustain if not increase demand for petroleum, but that scenario ended at about 2:45 yesterday afternoon," he said, referring to the time of Bernanke's speech.
Oil was already under pressure on Wednesday, when Bernanke said the U.S. economy was expanding strongly enough for the central bank to begin slowing the pace of its bond-buying stimulus later this year.
Prices also took a hit from a surprise increase in U.S. crude inventories during the summer driving season when demand for gasoline generally rises. Crude stocks rose by over 300,000 barrels, surprising analysts who had expected a 500,000 barrel drop.
On the technical charts, Brent has fallen below support at $104 and also tested the next level at the 50-day moving average at $102.96.
Analysts said concerns about a disruption in supplies from the Middle East, home to about a third of the world's output, could limit the downside of oil prices.
Investors have worried that fighting in Syria could spread through the region. The United States has said it plans to send U.S. weapons to Syrian rebels following proof the Syrian government had used chemical weapons against opposition forces.
"Brent has more supportive fundamentals, which helps to support prices," said Addison Armstrong, senior director of market research at Tradition Energy in Stamford, Connecticut.
"It's kind of hard to sell Brent, and given that, U.S. crude has a hard time dropping down to what I think should be a lower price."
(Additional reporting by Alex Lawler and Manash Goswami; Editing by David Gregorio)