Oil mixed on slower China growth

SINGAPORE: Oil prices were mixed in Asian trade Tuesday after energy hungry China said its economy grew at a slower pace in the third quarter amid slowing orders from its key US and European trading partners.

Gross domestic product in the world's second-largest economy grew 9.1 percent year-on-year in the three months to September, compared with a 9.5 percent expansion in the previous quarter, the government said.

As the world's largest energy consumer, China has a direct impact on crude prices and oil demand, according to the International Energy Agency.

New York's main contract, light sweet crude for delivery in November, was down eight cents to $86.30 per barrel Tuesday, while Brent North Sea crude for December delivery inched up five cents to $110.21 in volatile trading.

"I think this is because the China GDP data is down, because the market consensus is looking at 9.3 percent but the result turned out to be 9.1 percent," said Ker Chung Yang, a commodities analyst for Phillip Futures in Singapore.

"The market fears that China has slowed down their economic growth and this will dampen oil demand."

The Chinese economy had expanded 9.5 percent year-on-year in the second quarter, slower than the 9.7 percent posted in the first quarter and 9.8 percent in the fourth quarter of 2010. (AFP)