* Fall in China equities weighs on prices
* North Sea crude October output to reach 2-year high
* U.S. Labor Day holiday keeps trade thin
* Saudi set to maintain near-record output into Q4
(Updates prices paragraph 5, adds Saudi output paragraph 9)
By Lisa Barrington
LONDON, Sept 7 (Reuters) - Oil fell more than 3 percent on
Monday, hit by weaker Chinese equities and record North Sea
crude production data that added to global oversupply concerns.
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.
"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 LCOc1 futures contracts for October fell $1.98 to
settle at $47.76 a barrel, a 3.73 percent loss. U.S. crude
CLc1 fell $1.80 to $44.25 per barrel by 2:48PM EST (1848 GMT),
with trading volume of around 75,000 lots less than one-quarter
the norm due to the U.S. Labor Day holiday.
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.
The Organization of the Petroleum Exporting Countries is
producing close to record volumes to squeeze out competition,
especially from U.S. shale producers, which have so far
weathered the price plunges to keep pumping oil.
Saudi Arabia is set to maintain output at around 10.2
million to 10.3 million barrels per day, near this summer's
record high, in the fourth quarter as rising refinery demand
offsets lower local use for power, according to industry
"The focus is shifting back to the still-high oversupply,"
Commerzbank (XETRA:CBKG) senior oil analyst Carsten Fritsch said.
In the short term, supply will swell further from the North
Sea, where crude 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 supplies. O/LOAD
Despite this production spike, the year-long decline in oil
prices has 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.