Oil fell to a two-week low as declining Chinese industrial profits signaled demand may be weakening in the biggest crude-consuming country after the U.S.
West Texas Intermediate futures slid 2.8 percent, erasing last week’s 2.3 percent gain. China’s industrial-company profits declined 8.8 percent in August, the most in at least four years. Investors are awaiting the release of measures of its factory output, and U.S. non-farm payrolls data are due later this week.
Crude had rebounded from a six-year low in August as weak prices forced U.S. drillers to idle rigs, causing production to slip in six of the past seven weeks. That rally is sputtering on speculation that a global glut will persist as Chinese economic growth slows and Iran prepares to boost exports should sanctions against the country be lifted.