Oil prices slipped on Monday
Early gains due to strong economic news in China and the continuing supply constraints of major oil producers have retreated partially.
Crude oil benchmarks steadily soared throughout 2021 as major oil producers' supply constraints, accelerated coronavirus vaccine delivery and strengthening economies fueled fuel demand hopes.
Brent crude futures for May settled at $68.88 a barrel, losing 34 cents. West Texas Intermediate (WTI) crude for April settled at $65.39 a barrel, shedding 22 cents.
According to the data, China's industrial output growth accelerated in January-February and exceeded expectations. Daily refinery output data increased by 15% compared to a year ago.
Saudi Arabia, the largest oil exporter, cut its April-loaded crude oil supply to at least four North Asian buyers by up to 15%, while Indian refineries met their normal monthly needs.
OPEC and its allies agreed to extend most supply cuts this month until April.
Also, a massive US stimulus package was approved this month, raising expectations for global economic growth. Washington is also reviewing tax rates on fuel companies and fuel oil to boost demand for oil.
Expectations that crude oil stocks may continue to increase due to the winter storm in Texas last month also put pressure on prices.
Still, analysts said a pact by top producers to rein in output and a rebound to demand due to vaccine roll-outs will keep pushing prices upward despite any temporary setbacks.
