Oil falls to lowest close in 3 weeks

Oil drilling rigs

Oil dropped to its lowest closing in three weeks today, Oct. 2, amid profit booking as dollar rose.

Brent crude futures for December delivery fell 1.6%, or $1.49, to $90.71 per barrel, the lowest settlement since Sept. 11.

WTI crude for November delivery also sank 2.15%, or $1.97, to $88.82 per barrel, the lowest close since Sept. 13.

The World Bank lowered its forecast on China's economic growth for next year from 4.8% to 4.4%, due to long-term structural factors, high debt levels in the world's second-largest economy, and a weak real estate sector. The bank, however, kept current year's growth estimates unchanged at 5.1%.

OPEC's oil production rose for the second month in a row in September, with support from Nigeria and Iran despite US sanctions, as the organization pumped 27.73 million barrels per day during the month—an increase of 120,000 barrels per day from August, a Reuters survey showed.

The final reading of the manufacturing purchasing managers' index issued by S&P Global showed continuing pressures in the manufacturing sector in the US, Europe and Britain, as the sector remained in contraction zone—below 50 points—in September.