* Japan's manufacturing confidence slumps further
* China's slowdown sharper than official data shows -
Woodmac
* U.S. prices firmer on expected stock draw
* Venezuela repeats call for OPEC production cut
* Coming Up: API inventory report; 2030 GMT
(Adds comment, updates prices)
By Henning Gloystein
SINGAPORE, Sept 15 (Reuters) - Brent crude oil prices edged
down slightly on Tuesday as Asia's economic weakness persisted,
extending losses into a third session, while U.S. futures firmed
following a report that indicated a drawdown in weekly inventory
levels.
Market intelligence firm Genscape estimated a 1.8
million-barrel drop last week at the Cushing, Oklahoma delivery
point for U.S. crude. A weekly report from the American
Petroleum Institute is expected on Tuesday while the U.S. Energy
Information Administration's report is expected Wednesday.
Front-month U.S. crude futures CLc1 were trading at $44.15
a barrel at 0647 GMT, up 15 cents from the previous close.
Internationally traded Brent contracts LCOc1 , however, were
weaker following more gloomy Asian economic news, down 6 cents
at $46.31 a barrel. ID:nL4N11K1A2
"With Asian demand slowing, not just due to the contagion
from China's economic malaise, but also from rising political
risks in countries such as China, Malaysia and Thailand, the
outlook for oil market remains hazy," Energy Aspects said.
Japanese manufacturers' confidence slumped the most in a
year in September to an eight-month low and is forecast to
worsen further as fears of a China-led global economic slowdown
grow, a Reuters poll showed. ID:nT9N10I02C
In China, fiscal spending jumped 25.9 percent in August from
a year ago as Beijing tries to re-energise flagging economic
growth, but stock markets were unimpressed, with China's major
indexes down about 4 percent. ID:nL4N11L00Q
"In the first half of 2015, official GDP growth in China
came in at 7 percent year-on-year. Official economic growth is
in stark contrast to commodity demand growth which has been low
through 2015," consultancy Wood Mackenzie said, adding that its
China Activity Index implied economic growth of 5.3 percent in
Q2 and just 4.5 percent in Q3.
On the supply side, Venezuela repeated its call for the
Organization of the Petroleum Exporting Countries (OPEC) to cut
output, yet Middle East producers from OPEC - who effectively
control the export club - have so far pledged to keep output
high in a bid to defend market share against rising
competition. ID:nS8N0YN00Z ID:nL4N11K241
Despite the weak immediate outlook, analysts say they are
seeing early signs of a rebalancing market.
"The tables are turning - demand (is) slowing but supplies
are slowing too," Energy Aspects said.
"The market remains oversupplied, but the pace of
stockbuilds is moderating. And should U.S. and OPEC supplies
continue on current trajectories, November and December will see
small global crude stockdraws," the consultancy added.
(Editing by Himani Sarkar)