Oil tumbles on slower China growth

Oil prices tumbled in Asian trade today after China said its economy grew at a slower pace in the third quarter, analysts said.

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

China's economic growth has a direct impact on crude prices and demand, as it is the world's largest energy consumer according to the International Energy Agency.

New York's main contract, light sweet crude for delivery in November, was down nine cents to $86.29 per barrel, and Brent North Sea crude for December delivery dipped 22 cents to $109.94.

"I think this is because the China GDP data is down, because the market consensus is looking at 9.3% but the result turned out to be 9.1%," 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% year-on-year in the second quarter, slower than the 9.7% posted in the first quarter and 9.8% in the fourth quarter of 2010.