Investing.com - WTI crude oil prices settled modestly lower Monday, as gains on expectations for steep losses of Iranian crude were offset by fears that rising U.S.-China tensions could dent global crude demand.
On the New York Mercantile Exchange, crude futures for November delivery fell 19 cents to trade at $68.58 a barrel, while on London's Intercontinental Exchange, Brent fell 0.15% to trade at $77.97 a barrel.
U.S. President Donald Trump was expected to announce new 10% tariffs on $200 billion in Chinese goods as soon as Monday.
Trade war tensions were compounded somewhat after top White House economic adviser Larry Kudlow said Monday, China’s economic reforms were moving in the wrong direction, adding that he expected the United States would soon announce additional tariffs on Chinese goods.
China reportedly said it would reject new trade talks if Trump moves ahead with the next round of U.S. tariffs on Chinese products, Bloomberg reported, citing sources.
Many fear a trade war between the U.S. and China, the world's largest two economies would dent global growth, reining in demand for crude.
Crude oil prices had made a bright start to the week before turning negative as investors renewed bets on a global crude supply shortage amid signs of falling demand for Iranian crude oil as U.S. sanctions on Tehran loom.
South Korean imports of Iranian oil fell in August to just 55,161 barrels a day, down 72% from July levels, according to a report from Platts.
Trump pulled the United States out of the Iran nuclear agreement in May, allowing sanctions against Iran to snap back into place. The first wave of sanctions went into effect last month and a second set of sanctions on Iran's crude exports are slated for early November.
The subdued start to the week for oil prices comes as oil-market observers look ahead to the weekend meeting in Algiers between key OPEC countries and Russia for clues on whether the major oil producers will continue to ramp up production to offset the loss of Iranian crude exports.