Crude-oil futures fell to a seven-week low in Asian trading Thursday, after data suggested that demand is sluggish in the U.S. and China--the world's two biggest economies.
Nymex crude, which topped $100 a barrel last week on news of quantitative easing in the U.S., extended losses from the previous three days, falling below $91 a barrel.
Signs of slowing growth in the Chinese economy contributed to negative sentiment in the oil market, with fresh PMI data from HSBC Thursday indicating that activity in China's manufacturing sector continues to shrink.
The reading marks the 11th straight month the index has been in contractionary territory, signaling extended difficulty for the energy-intensive manufacturing sector.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in October traded at $90.92 a barrel at 0647 GMT, down $1.06 in the Globex electronic session. November Brent crude on London's ICE Futures exchange fell $0.55 to $107.64 a barrel.
Focus in the oil market seems to have shifted toward fundamental factors, which indicate an oversupplied oil market.
Saudi Arabia, the world's biggest oil exporter, reiterated that it intends to keep output high to meet demand and said current high prices weren't supported by market fundamentals.
Late Wednesday, data showed oil inventories in the U.S. rose more than expected in the past week, suggesting that demand in the world's biggest economy is falling.
"The oil market's disconnect from a continued strong stock market and a steady euro would attest to some underlying shifts in which demand is likely much weaker than implied by visible stock levels or forecasts of major agencies such as the EIA and IEA," oil trading advisory firm Ritterbusch & Associates said in a note.
Nymex reformulated gasoline blendstock for October--the benchmark gasoline contract--rose 104 points to $2.8390 a gallon, while October heating oil traded at $3.0366, 74 points lower.
ICE gasoil for October changed hands at $952.75 a metric ton, down $5.50 from Wednesday's settlement.
Write to Jacob Gronholt-Pedersen at jacob.pedersen@dowjones.com
