US crude ends lower on US, China fears; emerging mess
Crude oil fell $1 on Monday under pressure from continued worries over emerging markets, weak factory data from China, and expectations for lower demand as U.S. refiners move into maintenance season.
Emerging market stocks and currencies fell, while data showed U.S. manufacturing slowed in January, pressuring global equity markets lower and weighing on oil prices.U.S. stocks fell on Monday, adding to recent losses after data showed the factory sector in the world's largest economy expanded in January at its slowest pace in eight months.
After data showed U.S. manufacturing slowed sharply last month, Brent crude was down 30 cents to $106, having sunk to a near 3-month low of $105.40 earlier in the session. U.S. oil finished the session down $1.06 to settle at $96.43.
U.S. oil refiners are expected to take 800,000 barrels per day (bpd) of capacity off line in the week ending Feb. 7, down from 979,000 bpd the previous week, data from research company IIR showed on Monday.
Analysts said macro demand issues in China, the world's second largest oil consumer, would continue to weigh on markets globally. Data released over the weekend showed China's factory growth eased to an expected six-month low in January, according to the official Purchasing Managers' Index by the National Bureau of Statistics.
The potential impact of international political tensions in Libya and Iraq on oil supplies is expected to keep a floor under prices.
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