<p>Oil prices slipped on Monday, pulling back from earlier gains fostered on strong Chinese economic news, on concerns about potential U.S. tax increases to pay for infrastructure spending.</p>.<p>Crude benchmarks have steadily climbed throughout 2021 as major oil producers restrain supply and coronavirus vaccine distribution quickens, auguring a return to stronger economic and fuel demand.</p>.<p>Brent crude futures for May lost 37 cents, or 0.5 per cent, to $68.85 a barrel by 12:58 p.m. EDT (1658 GMT), while U.S. West Texas Intermediate crude for April shed 31 cents, or 0.5 per cent, to $65.30 a barrel.</p>.<p>China's industrial output growth quickened in January-February, beating expectations, while its daily refinery throughput data rose 15 per cent from the same period a year earlier, data showed.</p>.<p>Top oil exporter Saudi Arabia cut the supply of April-loading crude to at least four north Asian buyers by up to 15 per cent, while meeting the normal monthly requirements of Indian refiners, refinery sources told Reuters on Friday.</p>.<p>The Organization of the Petroleum Exporting Countries and its allies, a group known as OPEC+, decided earlier this month to extend most of its supply cuts into April.</p>.<p>A massive U.S. stimulus package passed this month, raising prospects for global economic growth but also inflation.</p>.<p>Now, Washington is considering tax increases on corporations, high earners and fuel, to pay for a sweeping infrastructure plan, which could weigh on oil demand, analysts say.</p>.<p>"They will be putting people to work and they will be putting businesses back in the field to develop infrastructure, but between now and then, someone's got to pay for it," said Bob Yawger, director of energy futures at Mizuho. "The majority of it looks like it's going to be a tax event, so that's negative for demand."</p>.<p>Still, analysts said a pact by top producers to rein in output and a rebound to demand due to vaccine roll-outs will keep pushing prices upwards despite any temporary setbacks.</p>.<p>"Futures spreads remain in backwardation, and dips in prices remain shallow and short-lived," said senior market analyst at OANDA Jeffrey Halley, referring to a market structure in which the current value is higher than prices for later, encouraging oil sales. "Both (benchmarks) will find a procession of willing buyers if those regions are visited."</p>
<p>Oil prices slipped on Monday, pulling back from earlier gains fostered on strong Chinese economic news, on concerns about potential U.S. tax increases to pay for infrastructure spending.</p>.<p>Crude benchmarks have steadily climbed throughout 2021 as major oil producers restrain supply and coronavirus vaccine distribution quickens, auguring a return to stronger economic and fuel demand.</p>.<p>Brent crude futures for May lost 37 cents, or 0.5 per cent, to $68.85 a barrel by 12:58 p.m. EDT (1658 GMT), while U.S. West Texas Intermediate crude for April shed 31 cents, or 0.5 per cent, to $65.30 a barrel.</p>.<p>China's industrial output growth quickened in January-February, beating expectations, while its daily refinery throughput data rose 15 per cent from the same period a year earlier, data showed.</p>.<p>Top oil exporter Saudi Arabia cut the supply of April-loading crude to at least four north Asian buyers by up to 15 per cent, while meeting the normal monthly requirements of Indian refiners, refinery sources told Reuters on Friday.</p>.<p>The Organization of the Petroleum Exporting Countries and its allies, a group known as OPEC+, decided earlier this month to extend most of its supply cuts into April.</p>.<p>A massive U.S. stimulus package passed this month, raising prospects for global economic growth but also inflation.</p>.<p>Now, Washington is considering tax increases on corporations, high earners and fuel, to pay for a sweeping infrastructure plan, which could weigh on oil demand, analysts say.</p>.<p>"They will be putting people to work and they will be putting businesses back in the field to develop infrastructure, but between now and then, someone's got to pay for it," said Bob Yawger, director of energy futures at Mizuho. "The majority of it looks like it's going to be a tax event, so that's negative for demand."</p>.<p>Still, analysts said a pact by top producers to rein in output and a rebound to demand due to vaccine roll-outs will keep pushing prices upwards despite any temporary setbacks.</p>.<p>"Futures spreads remain in backwardation, and dips in prices remain shallow and short-lived," said senior market analyst at OANDA Jeffrey Halley, referring to a market structure in which the current value is higher than prices for later, encouraging oil sales. "Both (benchmarks) will find a procession of willing buyers if those regions are visited."</p>