Fuel prices on January 23: Check petrol, diesel rates in Delhi, Mumbai and other cities

Brent crude futures retreated by 46 cents, or 0.5 percent, to $87.17 at 0031 GMT, while US West Texas Intermediate (WTI) crude futures fell 40 cents, also down 0.5 percent, to $81.24 a barrel.

Last week Brent rose 2.8 percent, while the US benchmark logged a 1.8 percent gain.

Data shows a solid pick-up in travel in China after COVID-19 curbs were eased, ANZ commodity analysts said in a note, pointing to a 22 percent jump in road traffic congestion so far this month from a year earlier in the country's 15 key cities.

International Energy Agency head Fatih Birol on January 20 said energy markets could tighten this year if the Chinese economy rebounds the way financial institutions expect.

"I wouldn't be too relaxed about the markets, and 2023 may well be a year where we see tighter markets than some colleagues may think," Birol told Reuters, speaking on the sidelines of the World Economic Forum annual meeting in Davos.

The jump in China's traffic ahead of the Lunar New Year holiday bodes well for fuel demand after the two-week vacation.

"The expected surge in demand comes as the market braces for further sanctions on Russian oil," ANZ analysts said. Read more

(With inputs from Reuters)