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Oil edges down on slowing China economy

london - China's 2018 crude runs hit record 12.1 million bpd

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Oil prices edged lower on Monday, echoing a weaker tone on global stock markets after evidence that economic growth in China, the world's second-largest crude consumer, eased in 2018.

Brent crude oil futures were down 13 cents at $62.57 a barrel by 1207 GMT, while US crude futures lost 10 cents at $53.70 a barrel.

China's 2018 economic growth slowed to the weakest in 28 years, data showed, at 6.6 per cent versus 6.8 per cent in 2017.

Although the slowdown was in line with expectations and not as sharp as some analysts had expected, the cooling of the world's No.2 economy casts a shadow over global growth.

"It remains quite likely that the trade spat with the US has played a part in this latest slowdown," CMC Markets chief market analyst Michael Hewson said. "But investors should also factor in that it simply isn't possible for the Chinese economy to grow at the pace that it has over the last 10 years, in the next 10 years."

While there is concern that a slowing global economy could impact oil demand, production cuts implemented by the Organisation of the Petroleum Exporting Countries are likely to support crude oil prices, analysts said.

A separate report from China's National Bureau of Statistics on Monday showed crude oil refinery throughput in 2018 climbed to a record 12.1 million barrels per day (bpd), up 6.8 per cent from the previous year. - Reuters