Oil prices muted in anticipation of evidence of a revival in demand in the second-largest oil consumer in the world, China, investors watched economic data on Monday.

Brent crude futures edged down to $86.24 per barrel, while US WTI crude slipped by $82.47 per barrel.

Last week marked the fourth weekly increase for both contracts, the longest sequence of gains since mid-2022.

Since the International Energy Agency (IEA) predicts that China will account for the majority of the demand rise in 2023, the release of China's first-quarter gross domestic product (GDP) figures this week is anticipated to be favorable for commodities prices.

The IEA issued a warning in its monthly report, stating that the output reductions planned by OPEC+ countries ran the danger of escalating the anticipated oil supply deficit in the second half of the year, which might harm consumers and the global economic recovery.

Traders have delayed expectations of a rate decrease, which usually happens in a recession, until late this year and are betting that the Fed will increase its lending rate by another quarter of a percentage point in May.