Oil Down Nearly 3% On Wall Street, China; Cushing Draw Limits Loss
NEW YORK, Sept 28 (Reuters) - Oil prices fell nearly 3 percent on Monday, pressured by tumbling equities on Wall Street and weak Chinese economic data, although an estimated drawdown in crude stocks at the key U.S. storage hub appeared to limit losses, traders said.
Gyrations in U.S. equity prices and the dollar from bets on the timing of the first U.S. rate hike in nearly a decade have fed volatility in oil prices, which have swung up to 8 percent a day over the past month.
Wall Street's S&P 500 index was down 2.2 percent after hitting a one-month low on bullish U.S. consumer spending data in August and bets of a rate hike by October.
"Oil is on the back foot as risk aversion is on the rise once more," said Matt Smith, director of commodity research at ClipperData, an energy markets database and consultancy in New York. "There is a distinct air of doom and gloom around."
Brent, the key indicator for global crude prices, settled down $1.26, or 2.6 percent, at $47.34 a barrel.
The U.S. crude benchmark, West Texas Intermediate (WTI) settled down $1.27, or 2.8 percent, at $44.43.
Heavy oil oversupply and eroding demand for energy in No. 2 economy China and other Asian and emerging markets have halved crude prices over the last year.
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