PETROCHINA Co, China's biggest oil and gas producer, yesterday posted an 8 percent drop in first-quarter profit on weak demand for oil products.

Net income fell to 36 billion yuan (US$5.8 billion) in the three months ended on March 31 from 39.2 billion yuan a year earlier, the Beijing-based company said in a statement to the Shanghai Stock Exchange.

"Due to the macro-economic situation, there was weak demand for refined products and the chemicals market remains in a downturn," PetroChina said.

Oil and gas output climbed 2.8 percent to 355.3 million barrels of oil equivalent in the first three months of this year. Crude oil output hit 231 million barrels, up 1.8 percent from last year, the statement said. Average realized crude price was US$103.08 a barrel, down 2.3 percent.