Energy markets decline, as China economy undershot target, though performing better than expected

On Tuesday oil markets descended, as China's economic growth for 2014 undershot a government goal and touched its weakest annual expansion in 24 years, contributing to worries in energy markets already suffering from slowing demand and oversupply.

According to China's National Bureau of Statistics, the world's second-largest economy rose 7.4 percent in 2014, less than the target of 7.5 percent. Growth in the fourth quarter held at its weakest in nearly six years, although coming in slightly better than expected at 7.3 percent.

Brent crude was trading at $48.71 per barrel at 0309 GMT, down 13 cents since their last settlement, while U.S. crude was trading down $1.32 at $47.37 a barrel. Recent price falls have sharpened the price difference between oil for immediate delivery and for barrels for supply at a later stage, known as a contango.

Brent's contango between deliveries in March this year and a year later is currently around $10 per barrel.

"Refiners will run any crude that is economically and technically possible to make a margin while margins are attractive (although product stocks are piling up)," Barclays said. Additional crude is going into storage to be sold at higher prices in the future, the bank added.

According to credit rating agency Moody's, the low oil prices could negatively affect Southeast Asian exploration and production companies.