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REFILE-UPDATE 6-Oil down around 2 percent on China equity falls

Published 2015-09-07, 10:59 a/m
© Reuters.  REFILE-UPDATE 6-Oil down around 2 percent on China equity falls
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* Fall in China equities weighs on prices - analyst
* U.S. Labor Day holiday keeps trade thin
* Investors awaiting monthly oil, euro zone GDP data

By Lisa Barrington
LONDON, Sept 7 (Reuters) - Oil fell around 2 percent on
Monday as Chinese equities weakened, with a firmer dollar and
global oversupply also weighing on prices.
The U.S. Labor Day holiday helped keep trade thin.
China's main indexes closed down on Monday as investors sold
shares in the aftermath of a four-day market holiday, during
which further restrictions on futures trading were announced.
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"Oil is only taking its cues from China," SEB chief
commodity analyst Bjarne Schieldrop said.
"The price is taking little notice of constructive data like
stronger (European) equities, stronger base metals and last
Friday's fall in U.S. rig count," he said.
Brent crude for October LCOc1 was down 90 cents at $48.71
a barrel by 1440 GMT, having reached an intraday low of $48.42.
U.S. crude for October CLc1 was down 75 cents at $45.30,
having reached an intraday low of $48.42.
Oil has fallen almost 60 percent since June 2014 on a global
supply glut, with prices seesawing in recent weeks as concerns
about a slowing Chinese economy caused turmoil in global stock
markets.
"For commodities, the key demand-side figure to care about
is not China's GDP growing at 7 percent instead of 9 or 10
percent, it is the manufacturing price index, which has been
falling for more than 40 months in a row," JBC Energy said.
High supply will be swelled further from the North Sea,
where crude oil output tracked by Reuters will rise to its
highest in just over two years in October, according to loading
schedules, adding to ample Atlantic Basin crude supplies.
O/LOAD
The dollar .DXY has strengthened since late August and
this has also hurt oil prices by making the commodity more
expensive for holders of other currencies.
The year-long decline in oil prices caused more than 5,000
job losses in Britain's North Sea oil and gas sector since late
last year, the country's Oil and Gas Authority said on Monday.
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Investors are awaiting euro zone second-quarter gross
domestic product figures on Tuesday, followed by monthly global
oil supply and demand data from U.S. and global energy
authorities to give oil further direction.

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