Oil falls to lowest since March

Brent and US crude futures settled at their lowest since March and posted their fourth straight weekly decline as weak economic data from China and a rise in US oil drilling rigs applied pressure.

China’s factory sector contracted in July by the most in 15 months, a preliminary private survey showed. The weaker-than-expected result followed a stock market slide that began in June.

Brent September crude fell 65 cents to settle at $54.62 a barrel, the lowest close since March 19 and off 4.3 percent for the week. The $54.30 session low was the lowest front-month price since April 2. US September crude fell 31 cents to end at $48.14 its lowest settlement since March 31 and down 5.5 percent for the week. The session low of $47.72 was the lowest intraday price since April 1.

The world’s top oil companies are set to report second-quarter earnings showing another drop in profits that could force more spending cuts, according to analysts.

The dollar’s strength also applied pressure, as a stronger US dollar makes greenback-denominated oil more expensive for consumers using other currencies.

Brent and US crude have so far clocked double-digit losses in July. With US crude off 19 percent, it could challenge December’s 19.4 percent drop, which was the biggest monthly slump since the financial crisis in 2008.