BEIJING, Oct 14 (Reuters) - Oil prices fell by more than

$1 a barrel, losing over 1.5% in early trading on Monday, after

disappointing Chinese inflation data and a lack of clarity on

Beijing's economic stimulus plans stoked fears about demand.

Brent crude futures were down $1.26, or 1.59%, at $77.78 per

barrel by 0020 GMT, and U.S. West Texas Intermediate crude

futures fell $1.20, or 1.59%, to $74.36 per barrel.

The negative news from China outweighed market concerns over

the lingering possibility an Israeli response to Iran's Oct. 1

missile attack could disrupt oil production, though the U.S. has

cautioned Israel against targeting Iranian energy

infrastructure.

China's deflationary pressures worsened in September,

according to official data released on Saturday, and a press

conference the same day left investors guessing about the

overall size of a stimulus package to revive the sputtering

economy.

The consumer price index rose 0.4%, the data showed, missing

expectations, and the producer price index fell at the fastest

pace in six months, down 2.8% year-on-year, according to the

National Bureau of Statistics.

"Saturday's briefing by the China Ministry of Finance has

turned out to be a flop. The fiscal measures needed to remove

downside risks to growth and ignite the animal spirits within

Chinese consumers (are) conspicuous in their absence," IG market

analyst Tony Sycamore said in a note.

Beijing said on Saturday it would ramp up debt issuance but

failed to give a dollar figure.

Both oil benchmarks had settled up 1% on the week on Friday

as investors weighed possible supply disruptions in the Middle

East and Hurricane Milton's impact on fuel demand in Florida.

The U.S. on Friday expanded sanctions against Iran in

response to its Oct. 1 attack on Israel, targeting its "ghost

fleet" that ferries illicit oil supplies across the globe.

In the U.S. market, energy firms last week added oil and

natural gas rigs for the first time in four weeks, according to

a closely followed report by energy services firm Baker Hughes.

The oil and gas rig count, an early indicator of future

output, rose by one to 586 in the week to Oct. 11.

The impact of Hurricane Milton boosted short-term demand in

the U.S. as evacuations supported gasoline consumption, but weak

demand dominated the fundamentals outlook.

Oil major BP posted a $600 million drop in its third-quarter

profit on Friday because of weak refining margins amid a

slowdown in global oil use.