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China's economy grew at the slowest pace in six years in the
third quarter, according to official data released on Monday,
making it more and more likely Beijing will cut interest rates
to stoke activity.
Brent for December delivery was down 38 cents at $50.08 a barrel
at 0807 GMT. U.S. crude for November delivery traded down 35
cents at $46.91 a barrel, extending last week's steepest losses
in eight weeks.
"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.
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.
Meanwhile Austrian oil producer OMV <OMVV.VI> lowered its oil
price forecasts on Monday, seeing 2016 prices at $55 a barrel
and rising to $70 a barrel in 2017, $80 a barrel in 2018 and $85
a barrel from 2019 onwards.
As a result the company also said it would take a 1 billion-euro
impairment charge on asset values in its upstream business.
Investors were also eyeing progress in the removal of western
sanctions on Iran that will allow the oil-rich nation to revamp
oil production and resume exports to western consumers.
The United States and the European Union on Sunday took formal
legal steps to lift sanctions on Iran once Tehran meets the
conditions tied to a landmark nuclear agreement with major world
powers.
(Additional reporting by Keith Wallis in Singapore; Editing by
Greg Mahlich)
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