Oil Falls to Six-Week Low on China Slowdown, Supply Surge

Oil traded near a six-week low after U.S. stockpiles climbed the most since March, Chinese manufacturing shrank and Japanese exports fell, signaling fuel demand may be slowing among the world’s biggest crude users.

Futures were little changed after declining as much as 1.4 percent. U.S. oil inventories surged 8.5 million barrels last week as Gulf of Mexico production resumed after Hurricane Isaac, Energy Department data showed yesterday. China’s manufacturing may contract an 11th month, according to a purchasing managers index by HSBC Holdings Plc and Markit Economics. Japan’s overseas sales fell a third month in August, the Finance Ministry said.