Oil Declines From One-Week High as China Manufacturing Weakens

Oil dropped from the highest close in a week in New York as manufacturing contracted unexpectedly in China, raising speculation that fuel demand may decline in the world’s second-biggest crude consumer.

Futures slid as much as 1 percent after capping the biggest quarterly gain since December on Sept. 28. China’s Purchasing Managers’ Index was 49.8 in September, the government said today. That compares with the median forecast of 50.1 in a Bloomberg survey. An index from HSBC Holdings Plc and Markit Economics showed an 11th contraction. Data released later today is expected to show U.S. output shrank a fourth month.