Oil prices fell on Monday ahead of the release of critical US inflation data due later this week, sparking recession fears in the country.
International benchmark Brent crude traded at $85.56 per barrel at 09.55 a.m. local time (0655 GMT), down 0.96% from the closing price of $86.39 a barrel in the previous trading session.
At the same time, American benchmark West Texas Intermediate (WTI) traded at $78.86 per barrel, a 1.07% drop after the previous session closed at $79.72 a barrel.
Oil prices came under pressure ahead of the release of US inflation data. This week, markets will focus on macroeconomic data, especially the Consumer Price Index (CPI) in the US, and statements from US Federal Reserve (Fed) officials.
Sentiments over soaring inflation raised oil demand concerns and caused a decrease in prices.
The acceleration in economic activity in the world's largest oil importer, China, raised hopes of a demand recovery while limiting price declines.
On the supply side, Russia's March announcement of a 500,000-barrel cut in oil production raised supply concerns.
In a statement last week, Russian Deputy Prime Minister Aleksandr Novak warned that Western countries' price caps on Russian oil and petroleum products could cause supply problems in the market.
Reiterating that Russia will not sell oil to those who impose a price cap, Novak stated that Russia would reduce production to maintain market balance.
Source: Anadolu Agency