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 per cent, to $87.17 at 0349 GMT, whil

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.

Sukrit Vijayakar, director of energy consultancy Trifecta in Mumbai said the market wants to preserve long positions in case China growth resumes. International Energy Agency head Fatih Birol on Friday said energy markets could tighten this year if the Chinese economy rebounds the way financial institutions expect.

The jump in China's traffic ahead of the Lunar New Year holiday bodes well for fuel demand after the two-week vacation.

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