Investing.com - Oil prices declined on Thursday, as concerns over the global economy mounted following the release of disappointing manufacturing data out of China and the euro zone.
On the ICE Futures Exchange in London, Brent oil for January delivery shed 47 cents, or 0.6%, to trade at $77.64 a barrel.
A day earlier, Brent declined 37 cents, or 0.47%, to settle at $78.10. London-traded Brent futures fell to a four-year low of $76.76 a barrel on November 14.
Elsewhere, on the New York Mercantile Exchange, crude oil for delivery in January slumped 22 cents, or 0.3%, to trade at $74.28 a barrel.
On Wednesday, New-York traded oil futures lost 14 cents, or 0.19%, to end at $74.50. Nymex oil hit $73.25 a barrel on November 14, the lowest level since September 2010.
Research group Markit reported that the euro zone’s manufacturing purchasing managers’ index fell to 50.4 in November from 50.6 in October.
The report said the PMI surveys pointed to economic growth of just 0.1% to 0.2% in the current quarter.
Germany private sector activity fell to a 16-month low this month, as factory output stalled. The country’s manufacturing PMI fell to 50 and service sector activity also slowed, with the PMI dropping to 52.1 from 54.4.
French private sector output contracted for the seventh consecutive month, with the manufacturing PMI falling to a three-month low of 47.6 and the services PMI ticking up to 48.8 from 48.3 in October, still well below the 50 level showing contraction.
Meanwhile, in China, data showed that China’s preliminary HSBC manufacturing index slumped to a six-month low of 50.0 in November from 50.4 in October and below forecasts for 50.3.
The data showed that the level of output in factories contracted for the first time in six months in November, underlining concerns over a cooling economy.
Germany and China are major oil consuming nations and manufacturing numbers are used as indicators for fuel demand growth.
Meanwhile, market players continued to weigh the likelihood that the Organization of the Petroleum Exporting Countries will cut output to support prices when it meets next week.
Libya's OPEC governor Samir Kamal said Wednesday that oil ministers from the 12-member group should trim excess supply and cut its output target when they meet in Vienna on November 27.
Oil ministers from Venezuela and Ecuador have also asked for action to prevent further price declines, while Saudi Arabia and Kuwait have resisted calls to lower production.
Concerns over weakening global demand combined with indications that OPEC producers will not cut output have weighed on prices in recent months.
London-traded Brent prices have fallen nearly 33% since June, when it climbed near $116, while WTI futures are down almost 32% from a recent peak of $107.50 in June.
Oil traders looked ahead to the release of key U.S. data later in the session for further indications on the strength of the economy and the future path of monetary policy.
The U.S. was to release data on initial jobless claims, consumer prices, existing homes sales and manufacturing activity in the Philadelphia region later Thursday.
The dollar was well-supported after minutes of the Federal Reserve's October policy meeting indicated that officials believe the economic recovery is strong enough to withstand external threats to growth.
Fed officials largely agreed that the economy was improving and no longer needed stimulus tools such as asset purchases, though concerns persisted that inflation expectations may be dipping, according to the minutes released Wednesday.
While the minutes offered little additional clarity about when rates could start to rise, markets continued to bet that the U.S. central bank will start raising rates sometime around September 2015.
Also Wednesday, the U.S. Energy Information Administration said in its weekly report that U.S. crude oil inventories rose by 2.6 million barrels last week, compared to expectations for a decline of 0.8 million barrels.