(Updates after Bernanke speech, adds quote, updates prices)

By Joe Brock

LONDON, Aug 27 (Reuters) - Oil fell below $73 a barrel on
Friday, heading for a third straight week of losses on lingering
doubts over the strength of U.S. economic recovery.

U.S. Federal Reserve Chairman Ben Bernanke said on Friday
that recovery in the world's largest oil consuming economy has
softened more than expected, while a government report showed
growth slowed more sharply than initially thought in the second
quarter.

U.S. crude for delivery in October fell 57 cents to $72.79 a
barrel by 1421 GMT. Oil hit a trough of $70.76 on Wednesday, the
lowest price since early June. Prices have slid about $10 from a
peak near $83 on Aug. 4.

October ICE Brent rose 4 cents to $75.06 on Friday.

In Friday's speech Bernanke said the Federal Reserve was
ready to take further steps if needed to spur the stumbling
economy, which analysts said would be supportive for riskier
assets such as equities and oil.

"You need to distinguish how the market reacts on the
release of the news versus more favorable prospects for risk
appetite with another round of quantitative easing," said Harry
Tchilinguirian, oil analyst at BNP Paribas said.

"Oil is only down around 50 cents."

Weakness in the consumer sector has slowed energy demand
growth in the United States, sending the nation's total
petroleum inventories to their highest since weekly records
began in 1990.

Bloated U.S. inventories are depressing prices of benchmark
West Texas Intermediate crude relative to North Sea Brent. The
premium of front-month Brent futures over front-month WTI jumped
over $2.00 on Friday for the first time since May.

Tropical Storm Earl in the eastern Atlantic Ocean continued
to move westward on Thursday, with the U.S. National Hurricane
Center expecting the system to become the season's third
hurricane by Saturday.

Early computer models still show the storm moving west and
northwest, away from key oil and gas producing areas in the Gulf
of Mexico. Hurricane Danielle, which strengthened to Category 4,
was also expected to stay in the Atlantic.
(Additional reporting by Alejandro Barbajosa in Singapore;
editing by Alison Birrane and Keiron Henderson)