UPDATE 11-Oil slides on U.S.-China tensions, OPEC+ uncertainty

* Putin, Saudi crown prince agree further coordination on
oil
output cuts
* Trump vows strong U.S. response to China on Hong Kong
* U.S. jobless claims data due on Thursday

(Updates with API data)
By Laura Sanicola
NEW YORK, May 27 (Reuters) - Oil futures tumbled on
Wednesday after U.S. President Donald Trump said he was working
on a strong response to China's proposed security law in Hong
Kong and as some traders doubted Russia's commitment to deep
production cuts.
Russian President Vladimir Putin and Saudi Crown Prince
Mohammed bin Salman agreed during a telephone call on further
"close coordination" on oil output restrictions, the Kremlin
said. Still, many felt Russia was sending mixed signals ahead of
the meeting in less than two weeks between the Organization of
the Petroleum Exporting Countries and its allies.
The group known as OPEC+ is cutting output by nearly 10
million barrels per day (bpd) in May and June.
"It sounds great on paper, but the market is holding back
excitement until we get a few more details about whether there
will be cuts, how many barrels will be cut, and the length of
the cuts," said Phil Flynn, senior analyst at Price Futures
Group.
Brent crude LCOc1 futures fell $1.65 to $34.52 a barrel, a
4.6 percent loss. U.S. West Texas Intermediate (WTI) crude
CLc1 was down $1.54 , or 4.5%, at $32.81.
Meanwhile, tensions between the United States and China
continued to rise after China announced plans to impose new
national security legislation on Hong Kong, prompting protests
in the street.
U.S. Secretary of State Mike Pompeo said he had certified
that Hong Kong no longer warrants special treatment under U.S.
law, a blow to its status as a major financial hub. Gloomy forecasts over the economic impact of the pandemic
also weighed on crude.
Economists estimate another 2 million Americans filed
initial applications for unemployment insurance last week.
The U.S. Labor Department will report on Thursday.
"Reduction of the huge domestic crude surplus of around 47
million barrels is proceeding at a much slower pace than the
decline in production as refiners have been hesitant in ramping
up activities," Jim Ritterbusch, president of Ritterbusch and
Associates in Galena, Illinois, said in a report.
The euro zone economy will probably shrink between 8% and
12% this year, European Central Bank President Christine Lagarde
said, warning the outcome would be between medium and severe.
U.S. crude oil, gasoline and distillate stocks all rose,
data from industry group the American Petroleum Institute showed
on Wednesday. The Energy Information Administration will release its own
inventory data Thursday at 11:00 EST.
In another sign of weak fuel demand, Japan's refineries
operated at only 56.1% of capacity last week, the lowest since
at least 2005.

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GRAPHIC: Weekly changes in petroleum stocks in the U.S. https://tmsnrt.rs/3fMVOzX
Demand/supply balance https://tmsnrt.rs/2AWTUfW
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