This fears even managed to outweigh supply concerns from the upcoming sanctions on Iran.
Brent crude oil futures dipped 16 cents, or 0.2% to $77.93 a barrel by 0035 GMT.
U.S. West Texas Intermediate (WTI) futures fell 20 cents or 0.3%, to $68.79 a barrel.
Wang Xiao, head of crude research with Guotai Junan Futures stated: “The market’s expectation of shortages has cooled after data from last week showed increases in supplies, while investors have lowered the outlook for oil demand.”
US President Donald Trump is likely to announce new tariffs of about $200 bn on Chinese imports by Monday, according to information a senior administrator gave to Reuters on Saturday.
The escalating trade row is raising concerns about the potential for slower growth in oil consumption, which will offset supple concerns stemming from upcoming US sanctions on Iran over its nuclear program.
Refiners in India, Iran’s second largest crude buyer will cut their monthly crude loadings from Iran for September and October by nearly 50% from earlier this year.
Another factor weighing on oil prices, is US drillers addition of two oil rigs in the week to December 1. This brings the total count up to 749—the highest since September, stated General Electric Co’s Baker Hughes energy services firm on Friday.