Oil slips on China data, Russian output; gasoline weighs too

Mon Nov 2, 2015 11:52am EST
 
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By Barani Krishnan

NEW YORK (Reuters) - Oil prices fell on Monday after soft Chinese factory data raised worries about energy demand in the No. 2 economy, while record high Russian crude output suggested little easing in the global supply glut.

Also pressuring crude futures were lower prices for gasoline RBc1 and ultra low sulfur diesel HOc1 on expectations of higher U.S. refinery output as more plants emerge from their autumn maintenance cycle.

Brent LCOc1, the global crude benchmark, fell 74 cents, or 1.5 percent, at $48.82 a barrel at 11:34 a.m. ET (1634 GMT).

U.S. crude futures Clc1 slid 50 cents, or 1 percent, to $46.09.

Early in the session, oil saw some support as the dollar came under pressure from data showing a fourth straight month of declines in October in U.S. manufacturing activity.

U.S. crude briefly traded in positive territory, with traders citing market intelligence firm Genscape's estimate of a decline of more than 400,000 barrels in inventories at the Cushing, Oklahoma delivery point for U.S. crude.

"In any event, the specter of significant slippage in Chinese oil consumption remains as an important background bearish consideration in our view within a market that is still very much oversupplied," said Jim Ritterbusch at Chicago-based oil consultancy Ritterbusch & Associates.

China's factory activity fell for an eighth straight month in October, a survey showed, pointing at continued sluggishness in the world's second-largest economy.   Continued...

 
A pump jack operates at a well site leased by Devon Energy Production Company near Guthrie, Oklahoma September 15, 2015. REUTERS/Nick Oxford