Oil prices fall amid slowdown in China's manufacturing sector

PanARMENIAN.Net - Oil prices turned lower in Asia on Monday, March 4, weighed by a slowdown in China's manufacturing sector and spending cuts in the United States, analysts said, according to AFP.

New York's main contract, light sweet crude for delivery in April dropped 29 cents to $90.39 a barrel in the afternoon and Brent North Sea crude for April delivery shed 17 cents to $110.23. China's official purchasing managers' index released Friday showed growth in manufacturing activity slowed last month, suggesting a recent pick-up in the world's number two economy is weaker than initially thought.

Sentiment was also hurt as across-the-board cuts of $85 billion in federal spending in the United States kicked in on Friday.

Economists have warned that the cuts could lead to job losses and hinder growth in the still fragile economy, a key global economic engine.

The spending cuts "won't brighten the outlook for growth or the unemployment rate", DBS Group Research said in a report.

U.S. President Barack Obama on Saturday urged Congress to find a balanced approach by blending "smart" cuts with reforms.