Crude prices continue to fall on weak data

Crude prices extended losses Wednesday on negative economic data around the world, after seeing biggest daily drops in two years.

Light, sweet crude for November delivery dropped 6 cents to settle at 81.78 U.S. dollars a barrel on the New York Mercantile Exchange, while Brent crude for November delivery shed 1.26 dollars to close at 83.78 dollars a barrel.

On the previous trading day, light, sweet crude for November on the New York Mercantile Exchange was down the most since November 2012 to a more-than-two-year low, as data showed weakening oil demands were coinciding with ample supplies.

Adding to woes in the crude market, data from both the United States and other countries came out disappointing on Wednesday.

U.S. retail and food services sales for September slipped 0.3 percent, said the U.S. Commerce Department. The decline was bigger than market consensus of a 0.2 percent drop.

U.S. business inventories rose 0.2 percent for August, also lower than market expectations of a 0.4 percent increase, the department said in a separate report Wednesday.

Moreover, the growth of manufacturing activity in the New York region slowed significantly in October, with the Empire State general business conditions index plunging to 6.2 from a five-year high of 27.5 in September, said the Federal Reserve Bank of New York.

Additionally, the U.S. Producer Price Index for final demand unexpectedly fell 0.1 percent in September on a seasonally adjusted basis, said the U.S. Labor Department on Wednesday. The decline of U.S. wholesale prices was the first in more than a year and missed analysts' expectations of a 0.1-percent increase, a sign that the U.S. economic growth is not as robust as expected.

Overseas, German Consumer Price Index remained unchanged in September from the prior month thanks to falling energy prices, the Federal Statistical Office of Germany said Wednesday, increasing fears over deflation in the euro area.

China's consumer inflation in September also eased to an over four-year low, China's official data showed Wednesday.