Oil prices dip on faltering demand

Brent crude oil prices slipped on Monday as manufacturing growth faltered in Europe and China at a time of ample supplies, although the risk of production setbacks remained high in Libya where the government has lost control of most of the capital. Euro zone manufacturing growth slowed more than expected last month and factory activity in several key countries appeared to be stagnating. French factory output fell at its fastest in 15 months in August. Chinese factory growth slipped to a three-month low in August as foreign and domestic demand cooled, muddying the outlook for demand from the world's key consumer of most commodities. Brent crude was 18 cents lower at $103.01 a barrel by 1030 GMT. U.S. crude traded 27 cents lower at $95.69 a barrel. Floor trading in the United States is closed on Monday for the Labor Day holiday. Ample supply is adding to the recent downward pressure on oil prices. ‘Crude prices appear to have stabilised,’ said Michael Wittner, oil analyst at French bank Societe Generale, according to Reuters.