--Crude falls with broader markets as China economic data, stock markets weigh

--Oil futures recently down 0.4% to $103.23/Bbl

--Talks between Iran and West set for Saturday

 
   By Jerry A. DiColo 
   Of DOW JONES NEWSWIRES 
 

NEW YORK (Dow Jones)--Crude futures fell Friday along with stock markets after disappointing data out of China raised concerns about the economy of the world's largest energy consumer.

Light, sweet crude for May delivery recently traded 41 cents, or 0.4%, lower at $103.23 a barrel on the New York Mercantile Exchange. Brent crude on the ICE futures exchange traded 36 cents lower at $121.35 a barrel.

China's economic growth fell to 8.1% last quarter, the lowest since 2009 and below economists' forecast of 8.3%. Leaders of the country, which is a major buyer of oil and other commodities, are trying to slow growth to a more sustainable level without causing a bigger economic slide that could spark fears about the global economy.

The data pushed down equities markets as well as oil prices as investors considered whether demand for fuel products would be hurt by the China slowdown.

"General markets have been spooked by Chinese economic data," said Matt Smith, an analyst at Summit Energy, in a client note.

Dow Jones Industrial Average futures were recently down 53 points to 12,897.

Crude futures have held in a tight range just above $100 a barrel for weeks. Despite signs of slowing fuel demand growth, worries about a supply shortage amid tensions between Iran and the West have kept prices from dipping lower.

On Thursday, the International Energy Agency said production from members of the Organization of Petroleum Exporting Countries outpaced demand during the first quarter. Oil stockpiles rose by as much as 1.2 million barrels a day during the first three months of the year, the IEA said, breaking "the cycle of repeatedly tightening fundamentals evident since 2009."

The IEA represents the world's developed energy-consuming nations.

Iran is set to meet with six world powers Saturday in Istanbul for talks focused on the country's nuclear program. A breakthrough in the talks could help reduce fears of a military conflict arising in the Persian Gulf region, which would likely lower oil prices. But investors remain wary of betting on declines until discussions begin.

Industry sources say the meeting will set the tone for oil markets in the coming weeks.

"The range is here. I don't expect the market to press any lower with the negotiations going on," said Rich Ilczyszyn, a broker at iiTrader in Chicago.

Front-month May reformulated gasoline blendstock, or RBOB, recently traded 1.12 cents lower at $3.3455 a gallon. May heating oil recently traded 0.22 cent lower at $3.1641 a gallon.

-By Jerry A. DiColo, Dow Jones Newswires; 212-416-2155; jerry.dicolo@dowjones.com.

--Jenny Gross contributed to this report.

(END) Dow Jones Newswires

April 13, 2012 09:26 ET (13:26 GMT)

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