LONDON: Oil dropped by more than 1 percent on Monday after weaker than expected Chinese economic growth fuelled concern over demand in the world's second-biggest oil consumer, while a partial restart of halted Libyan output also pressured prices.
China's gross domestic product (GDP) grew 6.3 percent year-on-year in the second quarter. “The GDP came in below expectations, so will do little to ease concerns over the Chinese economy," said Warren Patterson, ING's head of commodities research.
Brent crude fell 97 cents or 1.2 percent, to $78.90 a barrel by 1330 GMT and U.S. West Texas Intermediate crude dropped by 83 cents, or 1.1 percent, to $74.59 on a second straight day of losses for both contracts.
"China data was always looked forward to with a degree of hope; well, for bulls anyway," John Evans, of oil broker PVM, said in a report. "However, the contemporary economic backdrop for Asia's driver seems to now be wheeled out for the bears." Oil briefly rose after a Reuters news alert on Saudi Arabia extending a voluntary output cut.