LONDON: Global oil prices hit a fresh two-year low on Monday as weak Chinese economic data stoked concerns about the strength of world energy demand, dealers said.

In early morning deals, Brent North Sea crude for delivery in October sank to $96.21 per barrel, the lowest level since July 2, 2012. The contract later stood at $96.73, down 38 cents from Friday’s close.

US benchmark West Texas Intermediate (WTI) for October lost 85 cents to $91.42 a barrel.

“Oil has come off a fair bit as investors are taking in the weak Chinese industrial production data released over the weekend,” CMC Markets analyst Michael McCarthy told AFP.

“The figure feeds into the continuing story about slowing demand in China, “he added.

China said on Saturday that industrial output grew 6.9 per cent last month, its weakest rate since December 2008.

The key indicator slumped from 9pc growth in July and was also well short of the 8.7pc median increase in a survey of 15 economists by The Wall Street Journal.

The figures add to worries about the world’s number two economy following recent indicators suggesting growth is weakening even after limited stimulus measures.

McCarthy said that dealers are also eyeing the impact of fresh Western sanctions on Russia for its alleged role in the Ukrainian insurgency.

In punitive measures anno­unced Friday, the United States targeted Russia’s top bank Sberbank as well as leading energy and technology companies.

Published in Dawn, September 16th, 2014