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UPDATE 9-Oil slips on China data, Russian output; gasoline weighs too

Published 03/11/2015, 05:43 am
© Reuters.  UPDATE 9-Oil slips on China data, Russian output; gasoline weighs too
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* China factory activity falls for 8th straight month

* Russia oil production at post-Soviet record high

* Iran starts uranium enrichment decommissioning

* Weaker gasoline and ULSD also weighs on crude prices (Adds latest price moves)

By Barani Krishnan

NEW YORK, Nov 2 (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 83 cents, or 1.7 percent, to trade at $48.73 a barrel by 1:28 p.m. EST (1828 GMT).

U.S. crude futures Clc1 slid 69 cents, or 1.5 percent, to $45.90.

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. urn:newsml:reuters.com:*:nL1N12X114

U.S. crude also briefly traded in positive territory, with traders citing market intelligence firm Genscape's estimate of a weekly 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. urn:newsml:reuters.com:*:nL3N12U3UH

Oil prices have tumbled by more than half since June last year on a global supply glut. Worries about the glut were fed on Monday, when Russia reported that its October oil production hit a post-Soviet record of 10.78 million barrels per day. urn:newsml:reuters.com:*:nL8N12X10A

The data reflected Russia's strategy of defending its market share as rivals from the Gulf start supplying Moscow's traditional markets.

Last week, a Reuters survey showed sector analysts expected oil prices to remain weak next year as OPEC will likely stick to its stance of maintaining record-high production when it meets on Dec. 4. urn:newsml:reuters.com:*:nL8N12U3DS

OPEC member Iran is moving toward ramping up oil production and exports to Western consumers after starting decommissioning work on uranium enrichment under a nuclear deal struck with world powers in July. urn:newsml:reuters.com:*:nL8N12X181

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