UPDATE 8-Oil slips, retreats from gains notched on strong Chinese data

* Big questions loom ahead of Biden's next spending push
* U.S. eyes possible small risk of inflation from stimulus
* China Jan-Feb refinery output up 15% -data
* China Jan-Feb industrial output beat expectations -data
* Saudi Arabia cuts April crude volumes to some Asian buyers

(New throughout; updates prices, market activity and comments
to settlement)
By Laila Kearney
NEW YORK, March 15 (Reuters) - Oil prices edged lower on
Monday, pulling back from early gains fostered on strong Chinese
economic news and ongoing supply restraint from major oil
producers.
Crude benchmarks have steadily climbed throughout 2021 as
major oil producers restrained supply and coronavirus vaccine
distribution quickened, feeding hopes of stronger economies and
fuel demand.
Brent crude futures LCOc1 for May settled at $68.88 a
barrel, losing 34 cents. U.S. West Texas Intermediate crude
CLc1 for April settled at $65.39 a barrel, shedding 22 cents.
China's industrial output growth quickened in
January-February, beating expectations, while its daily refinery
throughput data rose 15% from a year earlier, data showed.
Top oil exporter Saudi Arabia cut supply of April-loading
crude to at least four north Asian buyers by up to 15%, while
meeting the normal monthly requirements of Indian refiners,
refinery sources told Reuters on Friday. The Organization of the Petroleum Exporting Countries and
its allies, a group known as OPEC+, decided this month to extend
most supply cuts into April.
A massive U.S. stimulus package passed this month, raising
prospects for global economic growth. Washington is considering
tax increases on corporations, high earners and fuel, to pay for
a sweeping infrastructure plan, which could crimp oil demand,
analysts say. "They will be putting people to work and they will be
putting businesses back in the field to develop infrastructure,
but between now and then, someone's got to pay for it," said Bob
Yawger, director of energy futures at Mizuho. "The majority of
it looks like it's going to be a tax event, so that's negative
for demand."
Prices were pressured by expectations that last month's
winter storm in Texas could keep boosting crude inventories.
"There's talk that because of the Texas power outages, we
may see another increase in inventories this week," said Phil
Flynn, senior analyst at Price Futures Group in Chicago,
referencing U.S. oil inventory data released on Tuesday and
Wednesday. API/S EIA/S
Still, analysts said a pact by top producers to rein in
output and a rebound to demand due to vaccine roll-outs will
keep pushing prices upward despite any temporary setbacks.