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

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Oil prices retreat in thin trade, but China outlook offers support
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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 U.S. West Texas Intermediate crude futures fell 36 cents, or down 0.4%, to $81.28 a barrel.Analysts said that the optimism around China's reopening will likely drive oil prices higher.

Data shows a solid pick-up in travel in China after COVID-19 curbs were eased, ANZ commodity analysts said in a note, pointing to a 22% jump in road traffic congestion so far this month from a year earlier in the country's 15 key cities.this year if the Chinese economy rebounds the way financial institutions expect.

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