Oil Tumbles 8% As Weak China Data Revives Growth Fears
NEW YORK, Sept 1 (Reuters) - Oil prices tumbled 8 percent on Tuesday in volatile trading that sent Brent futures back below $50 a barrel as weak Chinese data revived concerns about demand for petroleum after crude's three-day rally of more than 20 percent.
China's official Purchasing Managers' Index (PMI) dropped to 49.7 in August from 50.0 in July, reinforcing fears of slowing growth.
"It was primarily the China fear factor," Carsten Fritsch at Commerzbank in Frankfurt told the Reuters Global Oil Forum.
Other data showed U.S. manufacturing sector growth slowed in August to its weakest pace in more than two years, adding to concerns about faltering economic activity.
Brent crude slumped $4.59, or 8.48 percent, to settle at $49.56 a barrel, after falling as low as $49.24.
Brent rose $4.10, or 8.2 percent, on Monday, extending its rally to a third day as oil prices recovered from their lowest since the global financial crisis. Brent fell to a 6-1/2-year low at $42.23 on Aug. 24 as plunging Chinese equities markets battered global markets.
U.S. crude fell $3.79, or 7.7 percent, to settle at $45.41, after dropping as low as $45.13 following an 8.8 percent gain on Monday.
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