Crude prices tumbled on Thursday as economic data from Europe and China came in weak, restraining the oil demand outlook.

The euro zone PMI reading compiled by Markit fell to 48.7 in March from 49.3 in February, missing analysts' expectation of a moderate improvement. Factory activity in both France and Germany fell sharply, far short of economists' prediction. Markets feared that Europe had fallen back into recession.

China's weak manufacturing data also added to the sentiment. HSBC's flash China manufacturing PMI in March slowed to a four- month low of 48.1, down from 49.6 in February. Investors were worried about an economic slow-down in the world's second largest economy.

Meanwhile, the French energy minister said reportedly in a statement on Wednesday that France and other industrialized nations were considering to release the reserves in an effort to fight rising oil prices. The news came about one week after U.S. President Barack Obama and British Prime Minister David Cameron held talks in Washington on tapping crude reserves. Expectations of such moves rose and weighed on the crude prices.

Nonetheless, the U.S. economy continues to show positive signs as initial jobless claims continued to fall last week, to a four- year low.

Light, sweet crude for May delivery slipped 1.92 dollars, or 1. 79 percent to settle at 105.35 dollars a barrel on the New York Mercantile Exchange. In London, Brent crude for May delivery also declined and last traded around 123 dollars a barrel.

Source:china.org