Investing.com - Oil prices dropped on Monday as analysts expected slowing demand from China in upcoming months after a pair of disappointing manufacturing reports underlined concerns over the health of the worlds number two economy.
U.S. crude was down 1.62%, at $45.82 a barrel while Brent futures fell 1.69% to $48.72 a barrel at 7.16 AM ET.
Monday's bearish sentiment came after gains made last week following a further decline in the U.S. oil rig count which indicated that domestic crude production could drop in coming months.
The possibility of slowing demand in China also weighed, with growth faltering in the world's second-largest economy.
While China has so far avoided a hard landing, survey data showed that activity in China's manufacturing sector remained sluggish in October, fuelling fears the economy may still be losing momentum in the fourth quarter despite a raft of stimulus measures.