Investing.com - Oil prices eased on Monday after data showed some of Asia's largest economies are struggling, which offset a boost from a breakdown in diplomatic ties between Saudi Arabia and Iran that some believed could result in supply restrictions.
Saudi Arabia, the world's biggest oil exporter, cut diplomatic ties with Iran on Sunday in response to the storming of its embassy in Tehran. The diplomatic row between the two major oil producers escalated following Riyadh's execution of a prominent Shi'ite cleric on Saturday.
U.S. crude futures were at $37.34 a barrel at 12.03 GMT, off a session peak of $38.32.
Internationally traded Brent futures were at $37.94 after rising more than 3% earlier.
Oil's early price gains fizzled after data showed Chinese factory activity shrank for a 10th straight month, prompting a 7% fall on Chinese stock markets.
Manufacturing activity in India, which the International Energy Agency believes will lead growth in oil demand this year, contracted for the first time in two years.