LONDON—Brent crude-oil futures fell after China, a major oil consumer, reported a slowdown in its quarterly economic growth, and amid continued concerns over European economies.
Mid morning, the front-month December Brent contract on London's ICE futures exchange was 70 cents, or 0.6%, lower at $109.46 a barrel. Meanwhile, the front-month November contract on the New York Mercantile Exchange was trading down 49 cents, or 0.6%, at $85.89 per barrel.
Oil markets fell in response to news that China's economic growth slowed slightly in the previous quarter, while uncertainty about the euro-zone crisis weighed on the market as well, said Thina Saltvedt, senior oil-market analyst at Nordea Bank Norge in Norway.
Market participants' mood, already hurt Monday by Germany urging investors not to expect an ultimate solution for Europe's sovereign-debt crisis at the European Union summit this weekend, was further hit Tuesday by a Moody's warning on France's credit rating and weaker-than-expected survey results on on the German economic outlook, pushing down European equities and the euro.
"The market's confidence that the Greek and euro zone debt crisis will be solved is so fragile that all it took was a gentle reminder from the German finance minister [Monday] to cool down expectations," PVM said in a research note.
Brent prices could also be additionally pressured by reports from Libya that pro-Gaddafi forces have lost ground, boosting expectations of a speedier return of Libyan oil production to its normal level, said VTB Capital's Andrey Kryuchenkov.
Markets will also be keeping an eye on the U.S. later Tuesday, where U.S. Federal Reserve Chairman Ben Bernanke is scheduled to speak. The American Petroleum Institute, an industry body, will release a survey of U.S. crude-oil and products inventories.
Mid morning, the ICE's gasoil contract for November delivery was down $13, or 1.4%, at $934.75 per metric ton, while Nymex gasoline for November delivery was 170 points lower at $2.7259 per gallon.
Write to Konstanin Rozhnov at Konstantin.Rozhnov@dowjones.com
