Oil declines, heads for 3-month losses

Oil drilling rigs

Oil prices fell on Friday, heading for a third consecutive monthly drop, as investors assessed data showing China’s factory activity contracted for a seventh straight month in October.

Brent crude futures for December delivery dropped 0.7%, or 45 cents, to $64.55 a barrel as of 09:02 am KSA time.

WTI crude futures for December delivery fell 0.75%, or 46 cents, to $60.11 a barrel.

According to a National Bureau of Statistics (NBS) survey, China’s official manufacturing PMI fell to 49.0 in October from 49.8 in September, marking a six-month low and remaining below the 50-point threshold separating growth from contraction. The reading also came in below Reuters’ poll forecast of 49.6.

Markets are now awaiting the latest US oil and gas rig count data from Baker Hughes, due later today, for insights into US supply trends.