Oil dipped Monday night, but are somewhat stabilized Tuesday morning on signs of improved economic data from the world’s largest crude importer, China, reports news agency Reuters.

A barrel of European benchmark oil Brent goes for USD 85.00, down from USD 85.69 on Monday afternoon. US West Texas Intermediate trades at USD 81.05, down from USD 81.85 on Monday.

Data shows that the Chinese economy grew faster than expected in the first quarter, while Beijing pushed to bolster growth trajectories upon the end of strict Covid restrictions in December.

Similarly, the International Energy Agency (IEA) predicts that China will account for most of 2023 crude oil demand growth. However, the output cuts announced by the Organization of Petroleum Exporting Countries and allies, OPEC+, could risk exacerbating the supply deficit expected in the second half of the year.

Oil is squeezed by strong greenback. The US dollar has been strengthened parallel to interest rate hikes, making dollar denominated oil more expensive for holders of other currencies.

A poll by Reuters on Monday shows that US crude oil inventories likely fell by about 2.5 million barrels last week. Official data on US inventories are expected on Tuesday and Wednesday.