West Texas Intermediate crude fell, heading for the first weekly drop in more than a month, on speculation that China’s plans to cut excess manufacturing capacity will reduce fuel consumption.

Futures slid as much as 1.5 percent after China ordered more than 1,400 companies in 19 industries to cut excess production capacity this year, part of efforts to shift toward slower, more-sustainable economic growth. WTI reached $109.32 a barrel on July 19, the highest level since March 2012, on signs the U.S. economy is rebounding and on declining crude supplies.

WTI crude for September delivery fell $1.49, or 1.4 percent, to $104 a barrel at 11 a.m. on the New York Mercantile Exchange. Prices are down 3.7 percent this week. The volume traded was 34 percent below the 100-day average for the time of day.

Brent for September settlement dropped $1.05, or 1 percent, to $106.60 a barrel on the London-based ICE Futures Europe exchange. The European benchmark traded at a $2.60 premium to WTI, compared with $2.16 yesterday. Brent fell below WTI in intraday trading July 19 for the first time since August 2010.