US crude, gasoline stockpiles fall API data
US government data on inventories due at 1430 GMT
Concerns on China39;s economy remain key price driver

Aug 16 Reuters Oil prices edged down on Wednesday, extending a 1 drop in the previous session, as worries about China39;s struggling economy outweighed declining U.S. stockpiles.

Brent crude futures slipped 38 cents to 84.51 a barrel by 0456 GMT, while U.S. West Texas Intermediate crude WTI declined 35 cents to 80.64 a barrel. Both benchmarks had weakened to their lowest since Aug. 8 on Tuesday.

Concerns that China39;s faltering economy will weigh on demand offset tight supply in the oil market, ANZ analysts said in a client note.

Crude inventories at the Cushing hub are seen to be falling to their lowest level since April. Asian refineries are also snapping up all available US cargoes of oil, they added.

U.S. crude stocks dropped by about 6.2 million barrels last week, according to market sources citing American Petroleum Institute figures. That was a much bigger draw than the 2.3 million drop analysts polled by Reuters expected.

U.S. government data on inventories is due later on Wednesday.

China39;s economic activity data for July remains the key bearish market driver, after retail sales, industrial output and investment figures failed to match expectations, fuelling concern over a deeper, longerlasting slowdown in growth.

The July activity data has prompted some economists to flag risks that China, the…