Oil gives up from multi-month highs on profit-taking

Oil prices continued to fall as the US market opened on Monday, and pulled back from multi-month highs, with the US crude giving up its 2-month high, while Brent gave up its 3-month high, due to profit-taking and renewed concerns over a slowdown in Asian demand.

US crude fell 1.0% to $83.53 barrel, after opening at $84.39, and hit an intraday high and the highest since November 10 at $84.76, and Brent crude fell 0.8% to $85.56 a barrel, after opening at $86.23, and hit a high and the highest since October 26 at $86.68.

The US crude gained 3.3% on Friday, and Brent rose 2.7%, marking their third gain in four days.

Oil prices gained around 6.25% last week, the fourth straight weekly gain, and the largest weekly gain since August.

This weekly gain came thanks to the US dollar's drop, and the US inventories fall to nearly 3-year low.

Renewed concerns about levels of fuel demand in Asia, especially in China and Japan, are currently weighing down on oil prices.

Data showed the Chinese economy growth during the fourth quarter of 2021 was at the lowest pace in two years, and the retail sales fell sharply during December, which shows that China is still suffering from the pandemic economic fallout.

The Japanese government will tighten its Covid restrictions in states to prevent the rapid spread of the Omicron variant, which is expected to lower fuel demand in the world's third largest oil consumer.