Oil Drops as Investors Assess Chinese Demand

Oil prices fell in early trading on Tuesday, shedding some of the gains made in the previous session as investors evaluate the strong demand for travel during the holiday period in China, which could support fuel demand amid the potential for interest rate hikes in other countries to slow economic growth. Brent crude futures dropped seven cents to $82.66 per barrel by 0013 GMT, while U.S. West Texas Intermediate crude lost six cents to record $78.70 per barrel. Futures for crude rose more than one percent on Monday amid optimism that holiday travel in China would increase demand in the world's largest oil importer. The Federal Reserve, the Bank of England, and the European Central Bank are expected to raise interest rates in their monetary policy meetings during the first week of May. Investors are also looking forward to oil industry data on U.S. oil inventories. Analysts in a Reuters survey expect that the data will show a decline in U.S. crude stockpiles by about 1.7 million barrels for the week ending April 21.