London - (AFP) - Oil prices fell by about five percent Monday, on the back of data showing that the Chinese economy is facing difficulties in light of the restrictions of Covid and the deterioration of the real estate sector.

The price of Brent North Sea crude fell by 4.8 percent to $93.46 a barrel, while the price of a barrel of West Texas Intermediate crude fell 4.5 percent to $87.99 a barrel.

Meanwhile, equity markets looked generally flat while the dollar traded mixed as investors welcomed the easing of inflation in the United States, although it was still at its highest level in decades.

"It was a disappointing start to the week in financial markets as investor optimism collided with the reality of China's economic data," said Craig Erlam, senior market analyst at OANDA.

China's central bank cut key interest rates in a surprise move on Monday, while a batch of data showed a decline in the world's second-largest economy.

The data revealed that China's industrial production and retail sales growth for July were lower than expected.

Industrial production increased by 3.8 percent on an annual basis, but it declined compared to the 3.9 percent recorded in June, which is much lower than analysts' expectations.

Beijing's adherence to the "zero Covid-19" strategy is slowing the economic recovery, as sudden closures and prolonged quarantine measures deal a blow to commercial activity and the recovery of consumption.