Oil was steady after its first weekly loss since June, with macroenomic concerns outweighing signs of a tight physical market.

Global benchmark Brent traded below $85 a barrel, after dropping 2.3% last week. The cautious start to the week comes amid growing indications of economic malaise in China — ranging from downbeat consumers to struggling exports — and stubbornly persistent inflation risks in the US.

The end of the seven-week rally in crude leaves futures little changed for this year. The demand headwinds are offsetting signs of tightness in physical market after curbs in supply by OPEC+ linchpins Russia and Saudi Arabia and the shrinking of US stockpiles to the lowest since January.

Some refined products such as diesel — the workhorse fuel of the global economy — have started pricing in scarcity this winter, boosting their premium to the crude from which they are made. Gasoline edged lower in New York after slipping almost 5% last week.

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