Oil prices slide almost three dollars

LONDON, May 23 (AFP): Oil prices slumped Monday, hit by renewed concerns over European debt and weak Chinese output data, while the market waited to see if a new volcanic ash cloud would hit demand for aircraft fuel. New York's main contract, light sweet crude for delivery in July, shed $2.48 to $97.62 a barrel. Brent North Sea crude for July sank $2.62 to $109.77 a barrel in early London trade. "Continued and growing concerns for the European debt situation as well as a disappointing China (manufacturing data)... are the main driver" for prices at the start of the week, said Bjarne Schieldrop, a senior commodities analyst at Swedish financial group SEB. Chinese manufacturing eased to a 10-month low in May, preliminary HSBC data showed Monday, fuelling fears of a slowdown in the world's number two economy. The HSBC China Purchasing Managers Index (PMI) slipped to 51.1 last month-the lowest since July 2010 -- from a final reading of 51.8 in April, the bank said in a statement.