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Trade in one of Britain's largest property funds was suspended
in a sign of financial stress following the country's vote to
leave the EU. A flurry of data from China in coming weeks is
expected to show weakness in trade and investment.
Brent crude was down 99 cents at $49.11 a barrel at 1039 GMT.
The global benchmark is still up more than 80 percent from a
12-year low close to $27 reached in January. U.S. crude was down
$1.15 at $47.84 a barrel.
"Asia has been relatively weak and China is not providing much
support," said Olivier Jakob, oil analyst at Petromatrix, who
also said weak refined products were pressuring crude.
"Without the support of the products and with a structure in
crude oil that is weakening, it is difficult to think that crude
can break away to the upside."
British bank Barclays said concern over the global economy was
weighing.
"The deterioration in the global economic outlook, financial
market uncertainty and ripple effects on key areas of oil demand
growth are likely to exacerbate already-lackluster industrial
demand growth trends," the bank said in a report.
The forthcoming Chinese data is also expected to show sluggish
industrial output and another drop in foreign reserves,
reinforcing views that Beijing will roll out more economic
support measures.
Oil has gained support this year from signs that a supply glut
that has halved oil prices in the last two years is easing and
from unplanned outages from Canada to Nigeria.
The energy minister of Saudi Arabia, the world's largest oil
exporter, and the incoming secretary-general of OPEC agree that
the market is heading towards balance, the Saudi state news
agency reported on Monday.
A partial recovery in Nigeria contributed to a rise in OPEC
output last month, a Reuters survey found last week, but the
rebound may be short-lived.
A Nigerian militant group that has been carrying out attacks on
the country's oil installations said on Tuesday it blew up a
well and two pipelines, having claimed responsibility on Sunday
for five other attacks.
(Additional reporting by Henning Gloystein; Editing by Dale
Hudson)
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