2019.09.0208:25:00UTC+00Oil Futures Drift Lower

Crude oil prices were drifting lower Monday morning amid concerns about outlook for near term energy demand due to the ongoing trade dispute between the U.S. and China.

Despite recent reports suggesting that trade talks between the world's two largest economies will resume this month, there is still a great amount of uncertainty about the two nations moving anywhere closer to agreeing on a trade deal.

A new round of tariffs by the U.S. and China took effect over the weekend. U.S. tariffs on about $112 billion worth of Chinese imports went into effect on Sunday, while China started to impose retaliatory tariffs on some of the $75 billion worth of U.S. goods it has targeted.

West Texas Intermediate Crude oil futures for October were down $0.22, or 0.4%, at $54.88 a barrel.

On Friday, WTI crude oil futures ended sharply lower at $55.10 a barrel, losing $1.61, or 2.8%, after having added close to 5% in the previous three session.

A recent report from Reuters, citing survey results, said oil output from OPEC members rose in August for the first time this year due to higher supply from Iraq and Nigeria.

A report from Baker Hughes on Friday said oil rig count in the U.S. fell for a ninth month in a row in August.