Investing.com - Crude oil futures turned lower on Thursday, as ongoing worries over the health of the global economy fueled concerns that a global supply glut may stick around for longer than anticipated.
Crude oil for delivery in November on the New York Mercantile Exchange shed 23 cents, or 0.52%, to trade at $44.25 a barrel during U.S. morning hours.
The U.S. Commerce Department said that total durable goods orders, which include transportation items, decreased 2.0% last month, matching forecasts.
Core durable goods orders, excluding volatile transportation items, were flat in September, compared to expectations for an increase of 0.1%.
Orders for core capital goods, a key barometer of private-sector business investment, declined by 0.2% last month, worse than expectations for a 0.1% drop.
Shipments of core capital goods, a category used to calculate quarterly economic growth, decreased 0.2%, disappointing forecasts for a 0.5% gain.
Investors now looked ahead to a speech by Federal Reserve Chair Janet Yellen scheduled later in the day for additional clarity on the bank’s decision last week to leave interest rates on hold.
Federal Reserve Chair Janet Yellen is to speak on inflation dynamics and monetary policy at an event at the University of Massachusetts at 5:00PM ET on Thursday.
A day earlier, Nymex oil prices plunged $1.88, or 4.06%, following a larger than expected buildup in U.S. gasoline stocks.
According to the U.S. Energy Information Administration, gasoline inventories increased by 1.37 million barrels last week, above expectations for a gain of 0.82 million.
The build in motor fuel stocks raised concerns about high product inventories in the face of weak seasonal demand.
Elsewhere, on the ICE Futures Exchange in London, Brent oil for November delivery dipped 12 cents, or 0.24%, to trade at $47.63 a barrel during morning hours in New York.
On Wednesday, Brent futures sank $1.33, or 2.71%, as concerns over the health of China's economy weighed.
Private sector data released Wednesday showed that manufacturing activity in China contracted at the fastest pace since the global financial crisis, fueling fears over slackening demand for the industrial metal.
The preliminary reading of the Caixin manufacturing purchasing managers’ index fell to 47.0 in September from 47.3 a month earlier. It was the lowest reading since March 2009.
The gloomy figure added to concerns over the health of the world's second largest economy.
Crude oil prices have lost nearly 60% since last summer as ongoing concerns over a glut in world markets drove down prices.
Global oil production is outpacing demand following a boom in U.S. shale oil production and after a decision by the Organization of Petroleum Exporting Countries last year not to cut production.
Meanwhile, the spread between the Brent and the WTI crude contracts stood at $3.38 a barrel, compared to $3.27 by close of trade on Wednesday.