UPDATE 3-Oil slips to $108 as China manufacturing slows
* China July flash HSBC PMI falls to 11-month low
* U.S. gasoline, distillate stocks drop vs forecast gains -API
* Bomb at Egypt police station kills one, injures 17
* Coming Up: U.S. EIA weekly crude stocks; 1430 GMT
(Updates throughout, changes dateline, previous SINGAPORE)
LONDON, July 24 (Reuters) - Brent crude oil slipped to $108 on Wednesday as weak China data renewed concerns over demand growth from the world's second-biggest oil consumer although falls in U.S. refined product and crude stocks helped stem losses.
Activity in China's vast manufacturing sector slowed to an 11-month low in July as new orders faltered, a preliminary survey showed on Wednesday, pointing to slower economic growth.
The flash HSBC/Markit Purchasing Managers' Index (PMI) fell to 47.7 for July from 48.2 in June, marking a third straight month of contraction. It was the weakest level for the Chinese manufacturing index since August.
"It adds to the concern about the outlook for demand, and brings into question just how strong Chinese commodities demand will be," said Alexandra Knight, economist at National Australia Bank.
But oil gained some support from a U.S. industry report showing drops in crude and product inventories, particularly gasoline.
Brent crude was down 45 cents to $107.97 a barrel by 0815 GMT, after settling 27 cents up on Tuesday. U.S. oil rose 10 cents to $107.33, after ending 29 cents higher.
Inventory figures from the U.S. Department of Energy's Energy Information Administration (EIA) are due at 1430 GMT.
Investors will be keen to see if they confirm Tuesday's report by the American Petroleum Institute (API).
Surprise falls in oil product stockpiles in the API report revived hopes of a rise in demand growth in the United States, the world's biggest oil consumer.
Both U.S. gasoline and distillate fuel stockpiles, which include diesel and heating oil, fell several hundred thousand barrels versus expectations in a Reuters poll of gains of more than a million barrels, the API data showed.
The surprise drops overshadowed a smaller-than-expected fall in crude stocks, indicating healthy U.S. oil demand.
"Crude prices found support from declining U.S. stocks and supply disruptions," analysts at ANZ said in a note.
Oil prices also continue to be supported by unrest and tension in the Middle East, with a bomb killing one and wounding 17 in Cairo early on Wednesday.
Brent's premium above U.S. oil futures <CL-LCO1=R>, which briefly inverted last Friday, remained narrow at about $1.23 a barrel on Wednesday.
Brent tends to respond more dramatically to global economic data than its U.S. counterpart and Wednesday's Chinese manufacturing numbers could weigh more heavily on the North Sea crude futures contract.
A sub-index of the HSBC/Markit PMI measuring employment slid to 47.3 in July, the weakest since March 2009. It stood at 47.6 in June and has been below 50 for four months.
London copper fell from one-month peaks, Asian stock markets wobbled, while the dollar took back some ground after the China data.
(Additional reporting by Manash Goswami in Singapore; editing by Jason Neely)