Slower Economic Growth in China Likely to Lower Energy Demand: Oil Dips

Slower economic growth in China has raised concerns over oil demand from the world’s leading energy user. As a result, oil prices inched lower in Asia, as concerns over China's energy demand were stoked after customs data released Saturday showed the world's second largest economy swung to a huge trade deficit of US$31.48 billion in February.

China is generally a net exporter of goods. This deficit -- which is the largest for at least 12 years, has been triggered by setbacks in transacting with the country's major trading partners in the West who are suffering from the effects of the eurozone debt crisis and a weak US economic recovery. The customs data followed statistics that showed China's inflation rate slowing sharply in February and factory output growth also slipping.