Investing.com - Crude oil prices fell slightly in Asia on Monday with investors cautious on demand ahead of weekly supply gauges from he U.S., though demand hopes picked up with better than expected second quarter GDP from Japan.
The U.S. West Texas Intermediate crude September contract eased 0.04% to $48.80 a barrel. Elsewhere, on the ICE Futures Exchange in London, Brent oil for October delivery dipped 0.15% to $52.02 a barrel.
In China, fixed-asset investment rose 8.3%, compared with a 8.6% gain seen in July on year along with industrial production which gained 6.4%, missing a 7.2% gain seen and retail sales increased 10.4%, compared to a 10.8% gain seen.
Japan's second quarter surged an unexpected 4..0% on year as investment in plant and equipment lifted sentiment for the sixth straight quarter of expansion, official data released on Monday showed for the fastest pace of growth since January-March 2015.
The figure beat a 2.5% gain expected on year and saw the quarter pace at 1.0, well above the 0.6% seen. Japan, second quarter GDP was expected to rise a provisional 2.5% on year and at a 0.6% pace on quarter.
Ahead this week, the Fed’s latest meeting will be in focus as investors look for more hints on the timing of the next U.S. rate hike. A report on U.S. retail sales will also be closely watched. Elsewhere, UK data on inflation and employment will be in the spotlight amid ongoing concerns over the economic fallout from Brexit.
Last week, oil prices settled higher on Friday, but still ended the week with a loss amid lingering concerns over a global supply glut.
Aside from supply and demand, investors also closely followed developments in the U.S.-North Korea standoff.
The International Energy Agency said OPEC's compliance with the cuts had fallen to 75% last month, the lowest since the deal began in January.
The bearish compliance data comes a day after OPEC released its monthly report, showing production from the group rose further in July, led by gains in Libya and Nigeria, two members exempt from the cuts, and top exporter Saudi Arabia.
OPEC and 10 producers outside the cartel, including Russia, agreed since the start of the year to slash 1.8 million barrels per day in supply until March 2018 in order to reduce a global supply glut and rebalance the market.
However, so far, the deal has had little impact on global inventory levels due to rising supply from producers not participating in the accord, such as Libya and Nigeria, as well as a relentless increase in U.S. shale output.
Oilfield services firm Baker Hughes reported Friday that its weekly count of oil rigs operating in the U.S. ticked up by three rigs to a total of 768 last week.
The weekly rig count is an important barometer for the drilling industry and serves as a proxy for oil production and oil services demand.