WTI and Brent gave back their post settlement...>

OIL: WTI and Brent gave back their post settlement gains in Asia hours, as a

degree of caution crept back in to the broader market backdrop after Monday's

constructive session for risk assets, with both now sitting a little below their

respective settlement levels.

- Positive signs re: Chinese demand and continued focus on OPEC+ production

pullbacks added steam to the broader risk rally on Monday, allowing crude to

build on recent gains, although the fact that the benchmarks sit over $1.00 off

their respective session highs on relatively tame news flow may be a cause for

concern for bulls.

- The very front end of the WTI curve has moved into a state of backwardation in

recent days (ahead of Tuesday's CLM0 expiry), with CLM0 > CLN0, perhaps one of

the drivers behind NYMEX trimming its WTI margin requirements late on Monday.

- API inventory estimates headline on Tuesday.