Oil prices skid as concerns over U.S. demand recovery seep through market

* U.S. stimulus talks stalled; Trump postpones trade talks
with
China
* API says U.S. crude stocks fall 4.3 mln bbls, more than
forecast
* OPEC+ ministerial panel meets later to review compliance
on
output cuts

By Yuka Obayashi
TOKYO, Aug 19 (Reuters) - Oil prices slid on Wednesday as
concerns grew that U.S. fuel demand may not recover quickly amid
stalled talks on a post-coronavirus economic stimulus package,
overshadowing a bigger-than-expected drawdown in U.S. crude
stocks.
With investors keeping one eye on a key producer countries'
ministerial meeting later in the day, Brent crude futures
LCOc1 fell 38 cents, or 0.8%, to $45.08 a barrel by 0029 GMT,
having edged up 9 cents on Tuesday.
U.S. West Texas Intermediate (WTI) crude CLc1 futures was
down 25 cents, or 0.6%, at $42.64 a barrel, having ended
unchanged the previous day.
"Demand concerns weighed on oil prices, with U.S. economic
stimulus still nowhere in sight and U.S.-Sino trade talks being
postponed," said Hiroyuki Kikukawa, general manager of research
at Nissan Securities. U.S. President Donald Trump on Tuesday said he postponed
trade talks with China, adding that he does not want to talk to
China right now. "But losses were limited by positive news such as a drop in
U.S. crude stocks," Kikukawa said, predicting prices will stay
within a tight range amid the mixed signals.
On the positive side, U.S. crude inventories fell by 4.3
million barrels to about 512 million barrels, more than
analysts' expectations for a 2.7 million-barrel drawdown,
industry data from the American Petroleum Institute showed after
the markets closed on Tuesday. EIA/S API/S
U.S. government inventory data is due on Wednesday at 1430
GMT.
Investors are also keenly awaiting news from Wednesday's
meeting of a ministerial panel of the Organization of the
Petroleum Exporting Countries (OPEC) and allies including
Russia, a grouping known as OPEC+, which is set to review
adherence to a previously agreed deal on oil output cuts.
Compliance with the cuts stood at 95-97% in July, according
to OPEC+ sources and a draft report reviewed by Reuters on
Monday.
Russian Energy Minister Alexander Novak is set to join the
video meeting despite having tested positive for the novel
coronavirus.