Oil Falls As Supply Glut, Demand Concerns Apply Pressure
NEW YORK, Sept 9 (Reuters) - Oil prices fell nearly 4 percent on Wednesday, pressured by ample supply and concerns about demand being curbed by slowing economic growth.
Oil futures extended losses as U.S. equities turned lower after the prospect of economic stimulus from China boosted stock markets in Japan and Europe.
"The failure of oil markets to move higher on the back of this macroeconomic optimism calls fresh attention to the oil market's weak direct physical fundamentals," Citi Futures energy futures specialist Tim Evans said in note.
Crude oil futures have been under pressure from concerns about swollen inventories, high global production and the increasing likelihood that Iranian barrels will return to export markets even as slowing growth in China threatens demand.
Brent crude fell $1.94, or 3.92 percent, to settle at $47.58 after climbing 4 percent in the previous session.
U.S. crude dropped $1.79, or 3.9 percent, to settle at $44.15, having eased on Tuesday as trading resumed after the Monday's Labor Day holiday.
Labor Day is the traditional end of the U.S. summer driving season. Gasoline demand in the United States has been supportive for oil prices at a time when the global demand picture is clouded by worries about China's economy.
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