Oil prices at both the sides of the Atlantic retreated in Asia following a 6% rise on Monday, pulling the Asian equity markets lower. At the time of writing, the Brent futures were down 63 cents or 1.82% at USD 34.06/barrel. WTI futures were down 67 cents or 2% at USD 32.72/barrel. Short covering in oil began last week after Saudi and Qatar greed with non-OPEC member Russia to freeze output at January's highs. The bullish momentum gathered pace again on Monday after the IEA report predicted further drop in the US shale output. The drop seen in Asia was without a fundamental catalyst. Oil traders would watch out for American Petroleum Institute (API) data due for release in the US session. For more information, read our latest forex news.