Brent crude was down 11 cents, or 0.19 per cent, at $ 64.08 per barrel by 0916 GMT. US West Texas Intermediate crude futures were down 22 cents or 0.4 per cent at $ 57.86 a barrel. The benchmarks lost about 5 per cent and 6 per cent, respectively, last week.
The recent declines followed investors unwinding bullish positions built following the killing of a senior Iranian general in a US air strike in Iraq on Jan. 2 which sent oil prices to a four-month high, global oil strategist at BNP Paribas in London Harry Tchilinguirian said.
“As geopolitical tensions take a back seat for now, we may see more of the same in the short term,” Tchilinguirian told the Reuters Global Oil Forum.
Saudi Arabia’s energy minister Prince Abdulaziz bin Salman said his country will work for oil market stability at a time of heightened US-Iranian tension.
He also said it was too early to talk about whether the Organization of the Petroleum Exporting Countries and its allies, a group known as OPEC+, would continue with production curbs set to expire in March.
Oil prices were supported ahead of the signing at the White House on Wednesday of a Phase 1 US-China trade deal, which marks a major step in ending a dispute that has cut global growth and dented demand for oil.
China has pledged to buy more than $ 50 billion in energy supplies from the United States over the next two years, according to a source briefed on a trade deal.
Still, with traders already pricing in the signing of the deal, there is more downside risk to prices, said Michael McCarthy, chief market strategist at CMC Markets.
“Regardless whether the deal is signed, we might have a buy the rumours, sell the fact scenario unfolding,” he added.
Separately, US crude oil inventories were expected to have fallen last week, a preliminary Reuters poll showed on Monday.
The poll was conducted ahead of reports from the American Petroleum Institute (API), an industry group, and the Energy Information Administration, an agency of the US Department of Energy.
China’s crude oil imports in 2019 surged 9.5 per cent from a year earlier, setting a record for a 17th straight year, as demand growth from refineries built last year propelled purchases by the world’s top importer, data showed.