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Oil prices lower on China data, fading chance of output cut

Published 01/02/2016, 12:56
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Investing.com - Oil prices fell on Monday after China posted weak economic data, while fading prospects for a coordinated output cut by leading crude exporters also weighed.

Chinese data showed its manufacturing sector contracted at the fastest pace since 2012 in January, adding to worries about demand from the world's top energy consumer at a time when the market is already weighed down by a large supply overhang.

Global benchmark Brent crude was down 0.54% at $35.80 per barrel at 10.04 GMT, while U.S. crude was down 1.5% at $33.11 a barrel.

Oil prices also came under further pressure from dimming prospects of a coordinated production cut by exporters like the Organization of the Petroleum Exporting Countries and Russia due to their differences.

Oil prices jumped last week after Russian energy officials said they had received proposals from OPEC lynchpin Saudi Arabia on managing output.

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