Investing.com - Crude oil futures came under heavy selling pressure on Monday, as concerns over the global economic outlook and the impact on future oil demand prospects dampened the appeal of the commodity.
On the New York Mercantile Exchange, crude oil for delivery in March lost as much as 3.23%, or $1.56, to hit a session low of $46.68 a barrel, before recovering to trade at $47.14 during European morning hours, down $1.10, or 2.28%.
On Friday, New York-traded oil futures surged $3.71, or 8.33%, to settle at $48.24, amid indications U.S. producers may be pulling back on new production in response to low prices.
U.S. oil prices lost $5.96, or 10.17%, in January, the seventh consecutive monthly decline.
Elsewhere, on the ICE Futures Exchange in London, Brent oil for March delivery slumped $1.00, or 1.89, to trade at $51.99 a barrel. London-traded Brent rallied $3.86, or 7.86%, on Friday to end at $52.99.
Brent prices ended January with a loss of $5.92, or 8.97%, also the seventh straight monthly drop.
Data released earlier showed that the final China HSBC Manufacturing Purchasing Managers' Index ticked down to 49.7 in January from a preliminary reading of 49.8. Analysts had expected the index to remain unchanged.
Over the weekend, government data showed that China's manufacturing purchasing managers' index slipped to a two-year low of 49.8 in January, below expectations for a reading of 50.2 and down from 50.1 in December.
The gauge contracted for the first time since September 2012, adding pressure on policymakers to stimulate a faltering economy.
Meanwhile, in the U.S., official data Friday showed that the economy expanded 2.6% in the fourth quarter, below expectations for a 3.0% gain and slowing sharply from growth of 5.0% in the preceding quarter.
Later in the day, the U.S. was to produce a report on personal income and spending as investors look for further indications on the strength of the economy. The Institute of Supply Management was also to release data on manufacturing activity.
The U.S. and China are the world’s two largest oil consuming nations.
Oil prices have fallen nearly 60% since June as the Organization of Petroleum Exporting Countries resisted calls to cut output, while the U.S. pumped at the fastest pace in more than three decades, creating a glut in global supplies.
Industry research group Baker Hughes said Friday that the number of rigs drilling for oil in the U.S. fell by 94, or 7%, last week to 1,223, the lowest since October 2013.
The number of oil rigs has declined in 13 of the last 16 weeks since hitting an all-time high of 1,609 in mid-October.