LONDON: Global oil prices hit a fresh two-year low on Monday as weak Chinese economic data stoked concerns about the strength of world energy demand, dealers said.
In early morning deals, Brent North Sea crude for delivery in October sank to $96.21 per barrel, the lowest level since July 2, 2012. The contract later stood at $96.73, down 38 cents from Friday's close.
US benchmark West Texas Intermediate (WTI) for October lost 85 cents to $91.42 a barrel.
"Oil has come off a fair bit as investors are taking in the weak Chinese industrial production data released over the weekend," CMC Markets analyst Michael McCarthy told AFP.
"The figure feeds into the continuing story about slowing demand in China," he added.
China said on aturday that industrial output grew 6.9 percent last month, its weakest rate since December 2008.
The key indicator slumped from 9.0 percent growth in July and was also well short of the 8.7 percent median increase in a survey of 15 economists by The Wall Street Journal.
The figures add to worries about the world's number two economy -- a key driver of world commerce -- following recent indicators suggesting growth is weakening even after limited stimulus measures.
McCarthy said that dealers are also eyeing the impact of fresh Western sanctions on Russia for its alleged role in the Ukrainian insurgency.
In punitive measures announced Friday, the United States targeted Russia's top bank Sberbank as well as leading energy and technology companies.
Fresh European Union measures were also aimed at major Russian energy, finance, and defence companies, including, oil giant Rosneft.
"The fresh sanctions may hurt oil demand in the longer term, but generally they remain a secondary concern for investors at the moment," McCarthy said.
Russia, accused of supporting armed separatist rebels in eastern Ukraine, is the world's number-two oil producer, while Ukraine is a key conduit for Moscow's natural gas exports to Europe.
Prices had fallen sharply last week on demand forecast downgrades from the International Energy Agency watchdog, the US government's Energy Information Administration, and the 12-nation producers' cartel the Organization of the Petroleum Exporting Countries (OPEC).
"As the new week gets underway, crude oil prices are again under pressure," said Forex.com analyst Fawad Razaqzada on Monday.
"Both oil contracts are weighed down by weaker demand and excessive supply fears."
He added: "China's surprisingly weak industrial data ... and the growing western sanctions on Russia, which pose a great risk to economic growth and in turn crude demand from the world's fifth largest oil consumer, underscores those worries."
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