UPDATE 8-Oil ends mixed, pressured by U.S. tensions with China over rights bill

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* China warns U.S. of consequences over Hong Kong law
* U.S. inventories rise by 1.6 mln barrels
* Graphic on U.S. petroleum stocks: https://tmsnrt.rs/35DZduT

(Adds U.S. oil finishing higher, analyst's comment)
By Bozorgmehr Sharafedin
LONDON, Nov 28 (Reuters) - Oil prices ended mixed on
Thursday, with U.S. prices rebounding modestly from concerns
that arose from U.S. President Donald Trump signing into law a
bill backing protesters in Hong Kong, fuelling tensions with
China.
Brent crude LCOc1 lost 14 cents, or 0.2%, at $63.92 a
barrel, paring earlier losses.
West Texas Intermediate crude CLc1 reversed losses to
close up 13 cents, or 0.2%, at $58.24, with many U.S. traders
away for the Thanksgiving holiday.
China warned the United States that it would take "firm
countermeasures" in response to U.S. legislation backing
anti-government protesters in Hong Kong.
Investors are concerned that the move might delay further a
preliminary agreement between the United States and China to put
an end to their trade war that has slowed global economic
growth, and consequently consumption of oil. "The approval of the Hong Kong legislation backing
protesters is likely to put the trade agreement into question as
China has reiterated its threat of retaliation," said Hussein
Sayed, chief market strategist at FXTM.
"If investors suspect that the trade agreement is under real
danger, expect to see a sharp sell-off in December. For now,
investors are taking a wait-and-see approach."
On Wednesday, government data showed U.S. crude inventories
swelled by 1.6 million barrels last week as production rose to a
record 12.9 million barrels per day (bpd) and refinery runs
slowed. EIA/S
The earlier sell-off was overdone, said Phil Flynn, analyst
at Price Futures Group in Chicago.
"The overall economic feelings (in the U.S.) are pretty good
and that should see improved demand going forward," Flynn said.
Winter storms across much of the U.S. this week may also lift
diesel demand, he said.
Investors have also been focused on next week's meeting of
the Organization of the Petroleum Exporting Countries and allies
including Russia, a group known as OPEC+, which have been
withholding production to support prices.
"We expect OPEC+ to roll over its current production-cut
deal, which is set to expire at the end of March, by three to
six months," UBS oil analyst Giovanni Staunovo said.
"The upshot is that deeper cuts by the entire membership are
unlikely."
Russian oil companies proposed not to change their output
quotas as part of the global deal until the end of March,
putting pressure on OPEC+ to avoid any major policy change.
They also offered to exclude production of gas condensate, a
light oil, from the output quotas as Russia has been struggling
to meet its supply-reduction targets in recent months.
Easing supply concerns, Libya's National Oil Corp said
facilities at the 70,000-bpd El Feel oilfield had suffered only
minor damage in fighting over the past two days, allowing
production to restart. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
CHART: U.S. oil may test support at $57.37 per barrel
Brent oil may retest support at $63.55 U.S. petroleum inventories png https://tmsnrt.rs/35Hre4S
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