Manufacturing in China, which trails only the U.S. for consumption of the energy commodity, slipped, according to a preliminary gauge of the sector in the Asian nation. Crude oil futures dropped roughly 0.6 percent early during the Wednesday trade session.
"Crude oil continues to look well-supported on the back of concerns about declining inventories," market analyst Michael Hewson with CMC Markets Plc. in London told the news source on Wednesday. "A slightly more positive bias to European PMIs may also be helping on the margins, but concerns about Chinese growth remain a concern."
At 9:10 a.m. on Wednesday, WTI crude oil futures fell 0.66 percent, a 71-cent drop to $106.52 per barrel. Brent crude oil futures dove 0.97 percent, a $1.05 loss to $107.37 per barrel.
Reuters reports Chinese manufacturing fell to its slowest pace in 11 months in July, which is linked with restrictions on new orders. In turn, that prompted slower economic growth and development.
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