Brent crude oil, which touched its highest in nine months on Friday, was unchanged just below $119 a barrel this morning.

Oil futures dipped slightly in Asia early this morning in thin trading due to the Chinese New Year holiday, but data showing stronger than expected demand growth in China limited losses.

The higher than expected oil imports were interpreted as a sign of an accelerating economic rebound in the world's second-biggest oil consumer.

"(Oil price gains) are happening against a backdrop of an overall moderate improvement in world economic growth outlook and demand," Ric Spooner, chief market analyst at CMC Markets in Sydney said.

Brent dipped 5 cents to $118.85 per barrel by 04.00 GMT, after reaching $119.17 per barrel on Friday, the highest since May.

US crude futures dipped 2 cents to $95.70 per barrel.

Traders will be closely watching US retail sales and industrial production figures due out later this week for further indications of economic growth in the world's largest economy, Mr Spooner said.

With many Asian markets shut for Chinese New Year, however, analysts said they expected trade to be relatively light this week.

Reuters