* China factory activity falls for 8th straight month
* Russia oil production at post-Soviet record high
* Iran starts uranium enrichment decommissioning
* Weaker gasoline and ULSD also weighs on crude prices
(Adds latest price moves)
By Barani Krishnan
NEW YORK, Nov 2 (Reuters) - Oil prices fell on Monday after
soft Chinese factory data raised worries about energy demand in
the No. 2 economy, while record high Russian crude output
suggested little easing in the global supply glut.
Also pressuring crude futures were lower prices for gasoline
RBc1 and ultra low sulfur diesel HOc1 on expectations of
higher U.S. refinery output as more plants emerge from their
autumn maintenance cycle.
Brent LCOc1 , the global crude benchmark, fell 83 cents, or
1.7 percent, to trade at $48.73 a barrel by 1:28 p.m. EST (1828
GMT).
U.S. crude futures Clc1 slid 69 cents, or 1.5 percent, to
$45.90.
Early in the session, oil saw some support as the dollar
came under pressure from data showing a fourth straight month of
declines in October in U.S. manufacturing activity. urn:newsml:reuters.com:*:nL1N12X114
U.S. crude also briefly traded in positive territory, with
traders citing market intelligence firm Genscape's estimate of a
weekly decline of more than 400,000 barrels in inventories at
the Cushing, Oklahoma delivery point for U.S. crude.
"In any event, the specter of significant slippage in
Chinese oil consumption remains as an important background
bearish consideration in our view within a market that is still
very much oversupplied," said Jim Ritterbusch at Chicago-based
oil consultancy Ritterbusch & Associates.
China's factory activity fell for an eighth straight month
in October, a survey showed, pointing at continued sluggishness
in the world's second-largest economy. urn:newsml:reuters.com:*:nL3N12U3UH
Oil prices have tumbled by more than half since June last
year on a global supply glut. Worries about the glut were fed on
Monday, when Russia reported that its October oil production hit
a post-Soviet record of 10.78 million barrels per day.
urn:newsml:reuters.com:*:nL8N12X10A
The data reflected Russia's strategy of defending its market
share as rivals from the Gulf start supplying Moscow's
traditional markets.
Last week, a Reuters survey showed sector analysts expected
oil prices to remain weak next year as OPEC will likely stick to
its stance of maintaining record-high production when it meets
on Dec. 4. urn:newsml:reuters.com:*:nL8N12U3DS
OPEC member Iran is moving toward ramping up oil production
and exports to Western consumers after starting decommissioning
work on uranium enrichment under a nuclear deal struck with
world powers in July. urn:newsml:reuters.com:*:nL8N12X181