09:03 AM EDT, 04/01/2024 (MT Newswires) -- Oil prices eased early on Monday, falling off overnight highs despite positive demand signals from China and tight supply.

West Texas Intermediate crude for May delivery was last seen down US$0.27 to US$82.90 per barrel after earlier touching US$83.62, while June Brent crude, the global benchmark, was down US$0.36 to US$86.64.

The drop comes despite positive economic data from China, the No.1 importer, as it reported manufacturing activity rose in March for the first time in six months, flagging demand hopes as the country's real-estate sector remains mired in a debt crisis.

"China's official NBS manufacturing PMI, released on Sunday, and Caixin China manufacturing PMI, released this morning, both improved more than expected. The NBS manufacturing PMI returned to the expansion territory," Saxo Bank noted.

The data comes while supply remains tight as OPEC+ continues 2.2-million barrels per day of voluntary production cuts that are scheduled to remain in place until the end of June, while Russia indicated it will cut output amid Ukrainian attacks on its refineries. The attacks have reduced Russian refining capacity by 13%, according to an estimate from RBC Capital Markets.