Investing.com - Oil prices pushed higher in Europe trade on Tuesday, after China's fourth quarter growth met expectations and sparked hopes for more stimulus.
Official data released earlier showed that China’s economy grew 6.8% in the fourth quarter from a year earlier, the weakest pace of growth since the first quarter of 2009. That was in line with market expectations and down from growth of 6.9% in the previous three months.
Full-year growth was 6.9%, the slowest pace of expansion in a quarter of a century but roughly in line with the government's growth target of around 7%.
A separate report showed that industrial production rose by an annualized rate of 5.9% in December, below expectations for a 6.0% increase and following a gain of 6.2% in the preceding month.
Data on fixed asset investment and retail sales also missed forecasts, reinforcing views that Beijing will roll out further support measures soon for the world's second largest economy.
China is the world's second largest oil consumer after the U.S. and has been the engine of strengthening demand.
On the ICE Futures Exchange in London, Brent oil for March delivery tacked on 80 cents, or 2.8%, to trade at $29.35 a barrel by 08:45GMT, or 3:45AM ET.
A day earlier, London-traded Brent prices sank to $27.67, a level not seen since October 2003, before recovering slightly to end at $28.55, down 39 cents, or 1.35%.
The renewed fall in oil prices came as Iranian exports were set to resume after Western sanctions were lifted, fueling fears over increased supplies amid a global supply glut and slowing demand.
Analysts say the country could quickly ramp up exports by around 500,000 barrels. The surge in Iranian shipments is viewed as bearish for crude, which has fallen approximately 75% from its peak of $115 two summers ago, amid a glut of oversupply on markets worldwide.
Brent prices are down almost 22% since the start of the year, as lingering concerns over China’s economic outlook added to the view that a global supply glut may stick around for much longer than anticipated.
Elsewhere, crude oil for delivery in March on the New York Mercantile Exchange inched up 34 cents, or 1.1%, to trade at $30.73. On Monday, Nymex prices dropped to $29.35, the weakest level since October 2003.
New York-traded oil futures are down nearly 17% since 2016 began.
Meanwhile, Brent's discount to the West Texas Intermediate crude contract stood at $1.38. U.S. crude has been firmer relative to Brent lately, on signs that the U.S. oil market is likely to grow tighter following Congress' decision to lift a 40-year old ban on domestic oil exports, while a global glut gets worse in 2016 due to soaring production in Saudi Arabia and Russia.
Global crude production is outpacing demand following a boom in U.S. shale oil and after a decision by the Organization of the Petroleum Exporting Countries last year not to cut production in order to defend market share.