Oil prices tumbled about 8 percent on Tuesday, and Brent futures briefly fell back below $50 a barrel as weak Chinese manufacturing data revived concerns about global demand for petroleum.
China's official Purchasing Managers' Index (PMI) dropped to 49.7 in August from 50.0 in July, reinforcing fears about slowing growth. Oil prices retreated after a three-day rally of more than 20 percent.
In another sign of faltering economic activity, data showed U.S. manufacturing sector growth slowed in August to its weakest pace in more than two years.
The CBOE's crude oil volatility index rose by nearly 10 percent intraday on Tuesday.
On Aug. 24, Brent fell to a 6½-year low at $42.23 intraday as plunging Chinese equities markets battered global markets.
On Monday, Brent climbed $4.10, or 8.2 percent, extending its rally to a third day as oil prices recovered from their lowest levels since the global financial crisis.
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