Oil dipped on the forecast that traders made profits after crude peaked on enhanced U.S. and Chinese economic data that helped fan speculations.
After jumping 3.7 percent in the previous session, Futures dropped 0.6 percent in New York, most since the September attacks on oil facilities in Saudi Arabia.
In more than six years, Chinese factory deliveries have grown at their fastest rate and U.S. jobs hiring has been surprisingly solid.
Saudi Aramco, the largest oil company in the world, announced late Sunday its plans to list more than three years after the idea was first raised by Crown Prince Mohammed bin Salman.
The oil market takes enthusiasm from the indicators of stability in the two biggest economies of the world as countries inch closer to a provisional trade deal, in the midst of doubts about whether a more meaningful settlement can be attained.
For the first time in six weeks, hedge funds unwound bets against American crude, but short wagers remain nearly three times what they were in mid-September, data released Friday.
In a statement, Jeffrey Halley, a senior market analyst at OANDA in Singapore, said the mega-rally on Friday "was founded on a mixture of better than expected data and hope on a trade deal that really only keeps the lights on," he added.
West Texas Intermediate for delivery on the New York Mercantile Exchange dropped 33 cents to $55.87 a barrel. In Singapore, the contract jumped $2.02, falling 0.8 percent for the week.
Brent lost 34 cents, or 0.6 percent, on the London-based ICE Futures Europe Exchange, to $61.35 a barrel for January settlement. The global crude benchmark traded for the same month at a premium of $5.40 to WTI.
In an interview, OANDA's Halley said that given the volume of oil inventory, the market will look more in equilibrium with WTI in the $50 to $52 per barrel-range and Brent at $58 to $60.
To ensure the success of Aramco's IPO, Saudi Arabia is pulling out all the stops. For the third time, the Kingdom trimmed down corporate taxes, announced opportunities for buyers not to sell, and may also hike its dividends.
Yet it also admitted that the business is perhaps not worth the operational budget of $2 trillion that the Prince has pushed for.
U.S. Secretary of Commerce Wilbur Ross said late Sunday that this month the US and China are likely to finalize a "Step One" trade agreement. Certain parameters of the deal will tackle issues on China's laws and an enforcement mechanism, he said.
