UPDATE 8-Oil drops 4% on China-U.S. tensions, energy demand doubts

* China plan for HK security law raises tensions with U.S.
* Beijing fails to set target for economic growth this year
* Brent still on track for fourth weekly gain

(New throughout, updates prices, market activity and comments;
new bylind, changes dateline, previous LONDON)
By Stephanie Kelly
NEW YORK, May 22 (Reuters) - Oil prices tumbled about 4% on
Friday on rising U.S.-China tensions and doubts about how
quickly fuel demand would recover from the coronavirus crisis.
Fuel demand plummeted as the coronavirus pandemic caused
governments to impose restrictions on movement and businesses
closed their doors.
Oil has rallied in recent days on as activity starts to
resume, but prices dropped after China said on Friday it would
not publish an annual growth target for the first time. The
nation also pledged more government spending as the pandemic
kept hammering the world's second-biggest economy. "The coronavirus has nullified a decade of global oil demand
growth and the recovery will be slow," said Stephen Brennock of
broker PVM.
Brent crude LCOc1 futures fell $1.53, or 4.2%, to $34.53 a
barrel. U.S. West Texas Intermediate (WTI) crude CLc1 futures
fell $1.20, or 3.5%, to $32.72 a barrel.
China is set to impose new national security legislation on
Hong Kong after last year's pro-democracy unrest, a Chinese
official said on Thursday, drawing a warning from President
Donald Trump that Washington would react "very strongly" against
the attempt to gain more control over the city. Brent and U.S. crude were set for a 6% and 11% weekly gain,
respectively. But some said the gains this week may have come
too far, too fast.
"A second wave (of the coronavirus) is not such a remote
possibility and a new round of lockdowns could send prices back
to much lower levels very quickly, and the market knows it,"
said Rystad Energy senior oil markets analyst Paola Rodriguez
Masiu.
Oil prices have plummeted more than 40% so far in 2020,
rebounding in part due to efforts by OPEC+ to reduce supply. The
Organization of the Petroleum Exporting Countries and allies,
known as OPEC+, are reducing supply by a record 9.7 million
barrels per day from May 1 to support the market.
In a sign of the glut easing, U.S. crude inventories fell
last week.
Gasoline demand is rising and some airlines are
planning for a return of European travel.

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Weekly changes in petroleum stocks in the U.S. https://tmsnrt.rs/3fMVOzX
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>