Oil falls on weak China demand

Oil fell as much as 4% yesterday after China devalued its currency, raising questions about its demand for crude, while a new projection showed non-Opec producers were more resilient than expected to keeping output high amid low prices.

US crude hit contract lows, trading about $1 above its bottom for 2015. Brent, the global benchmark, lost most gains from a Monday rally, heading for its largest decline in a week.

Opec projected that oil supplies from countries outside the group will rise by 90,000 barrels per day this year, a sign the crude price collapse was taking longer than thought to hit the North American shale oil industry and other competing sources.