Also limiting oil price declines were supply disruption concerns on the potential for more U.S. sanctions against Russia and Iran.Oil futures dropped from their highest levels in weeks on Monday, pressured by weaker than expected consumer spending in China, the world's largest oil importer.
Brent crude futures fell 60 cents, or 0.81% , to USD 73.89 a barrel by 1043 GMT after settling on Friday at their highest since Nov. 22.
U.S. West Texas Intermediate crude dropped by 70 cents, or 0.98% , to USD 70.59 after registering its highest close since Nov. 7 in the previous session.
Chinese industrial output growth quickened slightly in November, but retail sales were weaker than expected, keeping pressure on Beijing to ramp up stimulus for a fragile economy facing U.S. trade tariffs under a second Trump administration.
"Risk off following some weaker than expected Chinese economic data is weighing on crude prices. Market participants are still awaiting guidance how Chinese officials plan to stimulate the economy," said UBS analyst Giovanni Staunovo.
The Chinese outlook contributed the decision by oil producer group OPEC+ to postpone plans for higher output until April.
"Whatever stimulus is being deployed, consumers are not buying into it; and without a serious sea-change in personal spending behaviour, China's economic fortunes will be stunted," said John Evans at oil broker PVM.
Traders also took profits while awaiting the U.S. Federal Reserve's decision on interest rates this week.
IG market analyst Tony Sycamore said that light profit-taking was to be expected after prices jumped more than 6% last week.
He also noted that many banks and funds are likely to have closed their books given reduced appetite for positions during the holiday season.
The Fed is expected to cut interest rates by a quarter of a percentage point at its Dec. 17-18 meeting, which will also provide an updated look at how much further Fed officials think they will reduce rates in 2025 and perhaps into 2026.
Lower interest rates can stimulate economic growth and increase oil demand.
Also limiting oil price declines were supply disruption concerns on the potential for more U.S. sanctions against Russia and Iran.
U.S. Treasury Secretary Janet Yellen told Reuters on Friday that the U.S. is exploring additional sanctions on "dark fleet" tankers and could target Chinese banks to limit oil revenue that helps to fund Russia as it continues the war in Ukraine.
Fresh U.S. sanctions on entities trading Iranian oil are already driving prices of the crude sold to China to its highest in years, with the incoming Trump administration expected to ramp up pressure on Iran.
