Crude oil prices drop on demand fears

Crude oil prices fell more than $1 a barrel on Monday morning as demand fears arising from the trade war between the United States and China were pressing down demand at the pump.

Brent crude futures were down $1.09, or 1.63%, at $65.78 a barrel, as of 1522 GMT. U.S. West Texas Intermediate crude fell $1.15, or 1.82%, to $61.87 a barrel.

Brent futures rose marginally in the previous two sessions, but nonetheless marked a week-on-week decrease of over 1% on Friday because of concerns about the impact of tariffs on the global economy.

The U.S.-China trade war is dominating investor sentiment in moving oil prices, said analyst John Evans of brokerage PVM, superseding nuclear talks between the U.S. and Iran and discord within the OPEC+ coalition.

Markets have been rocked by conflicting signals from U.S. President Donald Trump and Beijing over what progress was being made to de-escalate a trade war that threatens to sap global growth.

In the latest comment from Washington, U.S. Treasury Secretary Scott Bessent on Sunday did not back Trump's assertion that negotiations with China were underway. Earlier, Beijing denied any talks were taking place.