LONDON: Brent crude edged lower on Monday as data showing a slowdown in China's economic growth and weak momentum in the world's second-largest oil consumer weighed on the outlook for demand.
China's annual GDP growth slowed to 7.5 percent in the second quarter of 2013, the ninth quarter in the last 10 that the rate has fallen, official data showed.
The data was initially greeted with a sigh of relief because it came within expectations and dispelled fears of an even steeper deceleration. But trade later turned negative.
"Markets are relieved that the data is not worse, but it is certainly not great. Even though the GDP and retail data were in line, manufacturing activity is weak," Michael Hewson, an analyst at CMC Markets in London, said.
Brent crude front-month was down 21 cents at $108.60 a barrel by 0941 GMT. The August contract expires on Tuesday. US oil was down 50 cents at $105.45.
In other data, China's implied oil demand rebounded in June to the highest daily output since February as refineries returned from maintenance, but analysts expected annual growth to ultimately be flat on the previous year.
"Overall, the latest numbers from China were in line with expectations. There were no huge surprises and it is a continuation of the soft theme," said Ric Spooner, chief market analyst at CMC Markets. "But industrial output numbers were weak, and there is growth risk to the downside, going forward."
Lingering concerns of supply disruption provided some support. Brent has held above $100 for most 2012 and 2013 due in part to tensions between the West and Iran over Tehran's disputed nuclear programme.
Israeli Prime Minister Benjamin Netanyahu said on Sunday that Iran was getting closer to the "red line" he set for its nuclear programme. Investors are also watching the regime change in Egypt.
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