Monday, 2 November 2015
Oil prices drop on China demand worries
Oil prices fell in Asian trading hours on Monday as analysts expected weaker demand from China in upcoming months.
Benchmark US crude futures CLc1 had dropped 24 cents from their last settlement to USD 46.36 per barrel by 0232 GMT.
Internationally traded Brent futures LCOc1 were at USD 49.48 a barrel, down 8 cents.
Monday's falls came after gains made last week following a further decline in the US oil rig count which indicated that domestic crude production could drop in coming months.
But in Asia, the possibility of slowing demand in China dominated trade on Monday, with growth faltering in the world's No.2 economy.
While China has so far avoided a hard landing, activity in China's manufacturing sector contracted in October for a third straight month, an official survey showed on Sunday, fuelling fears the economy may still be losing momentum in the fourth quarter despite a raft of stimulus measures.
"Weak economic data out of China will likely keep any gains in commodity prices limited," ANZ said.