Oil prices retreat in thin trade, but China outlook offers support

Oil prices drifted lower in early trade on Monday, thinned by the Lunar New Year holiday in east Asia, but held on to most of last week’s gains on the prospect of an economic recovery in top oil importer China this year.

Brent crude futures was down by 46 cents, or 0.5%, to $87.17 at 0349 GMT, while US West Texas Intermediate (WTI) crude futures fell 36 cents, or down 0.4%, to $81.28 a barrel.

Last week Brent rose 2.8%, while the US benchmark logged a 1.8% gain.