2019.05.0606:25:00UTC+00Oil Prices Fall On Demand Concerns

Oil prices fell on Monday on concerns about global demand after U.S.-China trade tensions escalated.

Risk sentiment took a hit after U.S. President Donald Trump said on Sunday that the U.S. would hike tariffs on $200 billion worth of Chinese goods this week, with further tariffs on $325 billion goods "shortly".

Following Trump's threats to slam higher tariffs, the South China Morning Post newspaper reported, citing sources that Beijing is considering canceling the 11th round of trade talks with U.S. officials later this week.

Benchmark Brent crude dropped 0.9 percent to $70.22 per barrel, after having hit its lowest level since April 2 at $68.79 earlier.

U.S. West Texas Intermediate (WTI) crude futures were down 1.2 percent at $61.19 per barrel, after having hit as low as $60.04 earlier in the session, its lowest level since March 29.

Trump's sudden tough stance on tariffs spooked investors who had been anticipating a trade deal as early as this week.

The uncertainty over whether and when the U.S. and China will reach a trade agreement has raised concerns over future demand for oil.