LONDON--Brent crude oil prices fell Tuesday after a new sign of possible shrinking demand in China.
The official manufacturing purchasing managers' index, a measure of conditions in China's manufacturing sector published Tuesday, rose for the first time in six months. But this was the smallest March increase on record, suggesting demand in the world's second-largest consumer of oil will remain subdued.
"The largest part of this year's demand growth of 1.23 million barrels a day is expected to come from emerging markets, most notably China," said analysts at brokerage PVM, in a note to clients.
Brent crude for May delivery fell 19 cents to $107.57 a barrel on ICE Futures Europe.
U.S. crude-oil futures were down 29 cents at $101.29 a barrel on the New York Mercantile Exchange.
Later in the day the American Petroleum Institute will provide more information on U.S. oil inventories that have been on the rise. Oil markets have been fixated with the reduction in oversupply at the Nymex delivery point of Cushing, Okla. and the overall increase in U.S. oil supplies.
"Oil production is likely to pick up again now that the unusually cold winter has come to an end," said analysts at Commerzbank, in a note.
Recently the ICE's gasoil contract for April delivery was up $3.25 at $897.25 a metric ton, while Nymex gasoline for May fell 72 points to $2.9107 a gallon.
