LONDON: Oil prices fell by more than 2 percent on Monday on concerns over the pace of economic growth in China, the world's largest energy consumer, and indications that a nuclear deal between western powers and Iran could be implemented this year.
Brent for December delivery was down $1.35, or 2.7 percent, at $49.11 a barrel at 1320 GMT. U.S. crude for November delivery fell by $1.21, or 2.5 percent, to $46.05, extending last week's steep losses.
China's economy grew at the slowest pace in six years in the third quarter, according to official data released on Monday, making it increasingly likely that Beijing will cut interest rates to spur activity.
Data also showed that Chinese oil demand fell slightly in September, meaning the country's year-to-date growth is running behind the International Energy Agency's forecast.
Saudi Arabia, the world's biggest crude exporter, shipped 278,000 barrels a day less crude oil in August, trade data showed, suggesting demand for Saudi oil is sliding as the global supply glut persists.
"Chinese GDP data and the rise in the Saudi stockpile due to falling crude oil exports are weighing on prices," said Tamas Varga, oil analyst at London brokerage PVM Oil Associates, noting that news the prospect of six world powers and Iran potentially implementing a nuclear deal this year was adding to the bearish picture.
Iran's nuclear negotiator said on Monday that he was hopeful for an implementation before year-end, while a senior Iranian oil official said that the OPEC member will boost production by 500,000 barrels a day within one week of sanctions being lifted.
Austrian oil producer OMV lowered its oil price forecasts on Monday, seeing 2016 prices at $55 a barrel, rising to $70 a barrel in 2017, $80 a barrel in 2018 and $85 a barrel from 2019 onwards. The company said it would take a 1 billion euro ($1.1 billion) charge on asset values in its upstream business.
The Buzzard oilfield in the North Sea, the largest contributor to the Forties crude stream that helps to set the global oil price, was gradually ramping up production after a four-day outage.
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