Chinese economic woes have added downward pressure to crude oil prices, though markets extended losses Wednesday on weak European economic data.

Crude oil prices extended dramatic losses from Tuesday, sparked by a contraction in the Chinese manufacturing purchasing managers' index. The August reading of 49.7, indicating retraction, was the lowest in three years and a sign of a continued slowdown in the nation's economy.

Brent crude oil prices fell another 0.6 percent just before the start of trading in New York to $49.24 per barrel. The U.S. benchmark price, West Texas Intermediate, lost 1.5 percent from the previous close to sell for $44.71 per barrel.

Eurostat, the European Union's statistics office, reported industrial producer prices fell 2.1 percent year-on-year in July and were down 0.1 percent from the previous month. For energy, prices fell 6.5 percent year-on-year and were down 0.5 percent from June.

The energy sector was by far the largest contributor to slow inflation in the regional economy. Eurostat said inflation this month was expected to be relatively unchanged from July at 0.2 percent. The regional energy sector contracted by 7.1 percent.

Seasonally-adjusted unemployment in the 19 countries that share the euro was 10.9 percent in July, however, which is the lowest rate recorded in the region since February 2012.

Lower demand in an era of oversupply is pushing crude oil prices to historic lows, down more than 50 percent from June 2014 levels. Analysis company Energy Intelligence finds low oil prices "will only slow supply growth in the coming months, not bring it to a stop."

The economic picture in the United States, where oil production is contributing toward the supply emphasis, is mixed.

On Saturday, Stanley Fischer, vice chairman of the U.S. Federal Reserve, said U.S. inflation has been persistently lower despite gains elsewhere in the overall domestic economy. Labor continues to show momentum in the U.S. economy, with payroll processor ADP showing private sector employment increased by 190,000 jobs last month.