Crude oil jumped over 8% last week
The sentiment of China's easing of sanctions is still supportive
China's Q4 GDP data is the focus
Crude oil failed to maintain its strengthening momentum at the opening of the week, seeing it decline for the first time in eight sessions.
In the European session, US WTI crude oil futures fell to $79 a barrel after gaining more than 8.6% last week.
Meanwhile, Brent traded lower at $84 a barrel, following the 8.7% increase recorded last week.
Although down around 1% in Monday's trading session, both benchmarks are still trading around their highs for the year.
China's reopening from Covid restrictions supported crude oil trading last week, raising hopes for a boost in oil demand as economic activity and mobility pick up again.
In addition, price strengthening is also supported by a weaker US dollar following the expectation of a less aggressive rate hike from the Federal Reserve (Fed).
However, investors are more cautious this week as China's fourth quarter gross domestic product (GDP) data will be released on Tuesday.
It will show the impact of the shutdowns in October and September and the easing of Covid restrictions implemented in early December on the Chinese economy which will cast a shadow over 2023 growth prospects.
