Oil prices slide as China's economic uncertainty clouds fuel demand outlook

Oil prices fell on Monday as new data revealed a decline in China's inflation rate, raising concerns about the country's economic health and fuel demand.

The lack of clarity regarding Beijing's economic stimulus plans further heightened fears in the market, News.Az reports, citing Reuters.

Brent crude futures dropped 86 cents, or 1.1%, at $78.18 per barrel by 0523 GMT, while U.S. West Texas Intermediate crude futures fell 83 cents, also 1.2%, to $74.73 per barrel.

Both benchmarks gave up their gains from last week, falling by more than $1 a barrel on Monday, before recovering some ground. Brent gained 99 cents last week, while WTI climbed $1.18.

The negative news from China outweighed market concerns over the lingering possibility an Israeli response to Iran's Oct. 1 missile attack could disrupt oil production, though the U.S. has cautioned Israel against targeting Iranian energy infrastructure.

China's deflationary pressures worsened in September, according to official data released on Saturday, and a press conference the same day left investors guessing about the overall size of a stimulus package to revive fortunes in the world's second-largest economy.

News.Az