Oil falls; Brent records monthly loss of 5%

Oil drilling rig

Oil prices closed lower today, Oct. 31, after economic data indicated a slowdown in industrial activity in the second largest oil consumer in the world, raising fears of a decline in Chinese demand for oil.

Futures contracts for standard Brent crude for January delivery (the most active) fell by 1.55%, or $1.33, at $85.02 per barrel. December contracts (which expire today) settled at $87.41 per barrel, but recorded monthly losses of 5.2%.

WTI crude for December delivery fell by 1.55%, or $1.29, to $81.02 per barrel, recording a monthly loss of 8.75%.

According to official data, China's industrial purchasing managers' index fell to 49.5 points in October from 50.2 points in September, while it was expected to remain unchanged. This adds more challenges to the second largest economy in the world, with the real estate sector crisis.

OPEC production rose for the third month in a row, as members pumped 27.9 million barrels per day in October, an increase of 180,000 barrels per day compared to September, supported by the production of Nigeria and Angola, a Reuters survey showed.

Meanwhile, according to the US Energy Information Administration, oil production in the United States rose to 404.64 million barrels during August, about 13.05 million barrels per day—its highest level ever—based on series data dating back to 1920.