Oil prices in the US declined on Friday following a dip in Chinese manufacturing activity.

Brent oil declined 40 cents at $46.22 a barrel, while the US crude for October delivery was 30 cents lower at $41.02 a barrel, Reuters reported.

During August, China’s factory activity contracted in almost six-and-a-half years due to sharp decline in domestic and export demand, adding to worries about lower crude consumption in the country.

"Fear of slowing growth in China is increasing."

As US crude declined both global oil benchmarks are near six-and-a-half year lows.

Michael Poulsen at Global Risk Management in Denmark told the news agency: "Weighing on prices is the continued ample supply with crude oil builds in the U.S. and OPEC pumping at record levels.

"Fear of slowing growth in China is increasing."

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Oil prices gained support due to fall in dollar value as expectations of a US interest rate increase in September is dwindling.

A rise in crude imports and a decline in shale production led to an increase in US crude inventories last week, despite falling prices.