LONDON; Oil slipped below $122 on Tuesday as soft Chinese import data raised concerns about oil demand growth in the world's second-biggest consumer, adding to the downward pressure from disappointing US jobs data last week.
Brent crude futures were down 85 cents at $121.82 a barrel at 1300 GMT, after slipping as low as $121.02 on Monday, the lowest since March 15.
US oil fell 9 cents to $102.37.
Investors are watching for signs that China can avoid a hard landing as it tweaks monetary and fiscal policies to cut rising costs and help small businesses hit by a global downturn.
Overall imports grew 5.3 percent, lagging expectations for growth of 9 percent.
"An important point of the trade numbers is the softer overall import figure," said Ric Spooner, chief market analyst at CMC Markets. "That raises a question on the country's domestic activity and investment programme and if economic activity has been softer than anticipated."
Oil prices were supported by statements from Iran that it would suspend oil exports to some European countries ahead of an EU embargo in July.
Analysts said the market was awaiting the outcome of talks between Iran and world powers on April 14 in Istanbul. The resumption of talks after more than a year tempered worries about an immediate cut in supply.
"In anticipation of this, it's unlikely that we'll see much conciliatory language from the Iranians - that would be too much of a sign of weakness," said Philip Wiper at brokerage PVM.
Iran's English-language state television network Press TV reported that Iran had cut oil exports to Spain and may halt sales to Germany and Italy.
Data from Spain on Monday showed its crude imports from Iran dropped in January while Germany does not import large volumes of oil from Iran.
China's exports grew 8.9 percent compared with a consensus call for 7.2 percent, but the slide in imports suggested soggy domestic demand in the first quarter.
China's March crude imports were off the previous month's record. Still, the volume rose 8.7 percent on the year to 5.55 million barrels per day (bpd), the third highest ever, data showed, as refiners built stocks while scaling back operations.
Oil and European shares also fell as investors returning from the Easter holiday weekend in Europe cut their exposure to risky assets after surprisingly weak March US jobs data late last week.
Oil may come under further pressure on expectations of a further increase in US commercial crude inventories. Industry group American Petroleum Institute (API) is due to release its numbers later in the day.
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