UPDATE 3-Oil falls as U.S. inventories swell, economic growth slows By Reuters

* API data shows U.S. inventories up by 5.6 mln barrels

* Economic growth slows amid U.S./China trade dispute (Adds more comment, updates prices)

By Aaron Sheldrick and Henning Gloystein

TOKYO/SINGAPORE, Aug 1 (Reuters) - Oil prices fell on Wednesday after industry data showed U.S. stockpiles of crude unexpectedly rose, and as economic growth slowed, especially in Asia, amid the escalating trade dispute between the United States and China.

Brent futures dropped 28 cents, or 0.4 percent, to $73.93 a barrel by 0634 GMT, adding to a 1.8 percent loss in the previous session.

U.S. crude futures were down 41 cents, or 0.6 percent, at $68.35 a barrel, having dropped nearly 2 percent on Tuesday.

Brent fell more than 6 percent in July, while U.S. crude futures slumped about 7 percent, the biggest monthly declines for both benchmarks since July 2016. on prices was a report by the American Petroleum Institute (API) that showed domestic crude inventories rose by 5.6 million barrels last week. A Reuters poll had forecast a fall of 2.8 million barrels. API/S

Official data from the U.S. Energy Information Administration (EIA) is due later on Wednesday. EIA/S

"The API data this morning knocked the market lower. But it had already been under pressure after Brent failed to hold the push back up into the old one-year uptrend it broke out of in past months," said Greg McKenna, chief market strategist at AxiTrader.

Brent may drop to as low as $71 a barrel before being supported, while U.S. crude "has a ....

read more from m.in.investing.com