West Texas Intermediate crude fell for a second day after manufacturing gauges in China and the U.S. dropped, signaling reduced fuel demand.

Futures decreased as much as 1 percent. The Institute for Supply Management’s U.S. factory index dropped more than forecast last month. China’s Purchasing Managers’ Index slipped to a six-month low in January, a sign that government efforts to rein in credit will cool growth in the biggest oil-consuming country after the U.S. WTI’s discount to Brent shrank to the narrowest level since October today.

WTI for March delivery dropped 94 cents, or 1 percent, to $96.55 a barrel at 11:13 a.m. on the New York Mercantile Exchange. The volume of all futures traded was 13 percent above the 100-day average.

Brent for March settlement decreased 99 cents, or 0.9 percent, to $105.41 a barrel on the London-based ICE Futures Europe exchange. The volume of all futures traded was 7.6 higher than the 100-day average.

The European benchmark’s premium to WTI narrowed to as little at $8.09, the least since Oct. 18 on an intraday basis.