West Texas Intermediate and Brent crude declined for a second day as China’s industrial output expanded at the weakest pace since the global financial crisis.
Futures slid as much as 1.8 percent in New York as Brent in London was poised for the lowest close in more than two years. Factory production in China, the world’s second-biggest oil consumer, rose 6.9 percent from a year earlier in August, the National Bureau of Statistics said Sept. 13, compared with 9 percent in July and a median estimate of 8.8 percent in a Bloomberg News survey. Crude output in Libya increased to 870,000 barrels a day, according to state-run National Oil Corp.
“The major news is the data out of China,” Ric Spooner, a chief strategist at CMC Markets in Sydney, said by phone. “It means potentially another area of moderation in overall oil demand. We’re in a situation where the demand, supply scenario is fairly weak, and the market is stripping out a lot of the geopolitical risk premium.”