Oil prices down on Russian production gains

NEW YORK, Nov. 2 (UPI) -- An increase in Russian crude oil production and more signs of weakness in the Chinese economy pushed crude oil prices down on the first trading day in November.

The price for Brent crude oil was down about 1.3 percent from the previous session to $48.88 per barrel in early morning trading. West Texas Intermediate, the benchmark price for U.S crude oil, was down 1.5 percent to $45.85 per barrel.

Crude oil prices are moving steadily lower, off about 11 percent for the year, because of signs of lingering global economic weakness and a surplus in supplies.

Novatek, the largest private crude oil producer in Russia, reported a 40 percent increase in production year-on-year. Among those reporting a decline, Rosneft, one of the largest companies in Russian in terms of overall output, reported a 1.1 percent decline in production for October, when weighed against last year.

Russia's momentum in production mirrors the energy companies who've reported earnings so far in the third quarter. Most companies, despite the downturn sparked by the market tilt toward the supply side, have reported an increase in overall crude oil production this year.

In terms of broader economics, China continued with a long string of reports showing emerging weakness with a drop in the manufacturing purchasing managers' index, or PMI. A reading of 49.8 in October signals factory activity in the economy is in contraction.

The Shanghai Composite Index closed down 1.7 percent for Monday, with oil majors China Petroleum and Chemical Corp. and PetroChina Ltd. among those reporting heavy losses.