2018.08.2706:08:00UTC+00Oil Dips As Trade Tensions Weigh

Oil prices fell on Monday on concerns that the U.S.-China trade dispute will hurt global growth. The downside, however, remained limited ahead of looming U.S. sanctions against Iran's oil sector.

Global benchmark Brent crude was down 35 cents or 0.46 percent at $75.78 a barrel while U.S. West Texas Intermediate (WTI) crude futures were down 31 cents at $68.41 a barrel. Trading activity was limited due to a public holiday in Britain.

Falling U.S. rig counts and a major draw in crude oil inventories last week supported prices as investors fret about the potential fallout from the U.S.-China trade dispute and the Turkish lira's crash on global oil demand growth.

Traders expect a major drop in supply once a second round of U. S. sanctions targeting Iran's valuable oil and energy sector come into effect in early November.