Oil falls 3 percent on weak China factory data

Oil prices fell more than 3 percent on Tuesday after official data showed China's giant manufacturing sector, the engine powering the world's biggest energy consumer, contracted at the fastest pace in three years. China's official Purchasing Managers' Index (PMI) fell to 49.7 in August from 50.0 in July, reinforcing concerns over the world's second-largest economy. The figures helped spur a retreat in oil prices after three days of hefty gains.