Oil lower on Chinese demand concerns

SINGAPORE: Oil prices inched lower in Asian trade on Monday on concerns of slower economic growth in China, the world's largest energy user, analysts said.

New York's main contract, West Texas Intermediate crude for delivery in April, shed 52 cents to $106.88 per barrel while Brent North Sea crude also for April was down 55 cents at $125.43 in morning trade.

Concerns over China's energy demand were stoked after customs data released Saturday showed the world's second largest economy swung to a huge trade deficit of $31.48 billion in February.

The Asian giant is normally a net exporter of goods.

"There has been a pullback in oil prices, mostly as a reaction to the huge trade deficit in China in February and concerns over slower growth in China," said Victor Shum, senior principal at Purvin and Gertz international energy consultants in Singapore. (AFP)