Oil prices edged lower on Monday as worries surrounding the resumption of US-China trade talks overshadowed support from OPEC-led supply restraint.
Brent crude futures lost 59 cents, or 0.95 percent, to settle at $61.51 a barrel.
US West Texas Intermediate (WTI) crude fell 31 cents, or 0.59 percent, to settle at $52.41 a barrel.
Trade talks between the United States and China resumed with working-level discussions before high-level discussions later in the week.
Beijing, however, expressed anger at a US Navy mission through the disputed South China Sea. This cast a shadow as the two countries try to reach a deal before the March 1 deadline when US tariffs on $200 billion worth of Chinese imports are scheduled to increase to 25 percent from 10 percent.
On Thursday, US President Donald Trump said he did not plan to meet with Chinese President Xi Jinping before the March 1 deadline, dampening hopes of a quick trade pact.
Escalating US-China trade tensions have cost both countries billions of dollars and disrupted global trade and business flows, roiling financial markets.
"There's a lot of uncertainty about what's going on with this trade war, whether they're going to get anything done," said Phil Flynn, oil analyst at Price Futures Group in Chicago. "You've got concerns about slowing growth."
A rising US dollar also weighed on oil futures. A stronger dollar makes greenback-denominated commodities more expensive for holders of other currencies.
"Until some dollar weakness begins to develop, the complex could have difficulty advancing much this week even allowing for some supportive elements out of an upcoming slew of energy releases," Jim Ritterbusch, president of Ritterbusch and Associates, said in a note.
Still, oil prices have been buoyed this year by output curbs from the Organization of the Petroleum Exporting Countries and its allies, including Russia, a group known as OPEC+.
The deal, effective from January, aims to cut 1.2 million barrels per day until the end of June to forestall a supply overhang. Suhail Al Mazrouei, the energy minister of the United Arab Emirates, said on Monday the oil market should achieve this balance in the first quarter of 2019.
OPEC and its allies meet on April 17 and 18 in Vienna to review the agreement, but a draft cooperation charter seen by Reuters fell short of a new formal alliance among the producers.
US sanctions on Venezuela, along with older sanctions on fellow OPEC member Iran, have also prevented crude prices from falling further.
Venezuela President Nicolas Maduro has sought OPEC support against the sanctions, citing their impact on oil prices and potential risks for other members of the producer group.
The country also wants to double its oil sales to India and is open to barter payment arrangements with the world's third-biggest crude consumer, Venezuelan Oil Minister Manuel Quevedo said on Monday.-Reuters
Cotton hits 1-year low on strong dollar, USDA report
NEW YORK: ICE cotton futures fell to their lowest level in more than a year on Monday, dragged down by a stronger dollar and a bearish global supply and demand report from the US Department of Agriculture (USDA) last week.
The most active cotton contract on ICE Futures US, the March contract, settled down 2 cents, or 2.76 percent, at 70.55 cents per lb.
The front-month contract slipped to its lowest since Nov. 20, 2017 at 70.30 cents.
"The supply/demand report that came out on Friday was decidedly negative and the dollar is up to new highs, so cotton has got two heavy forces against it today," said Rogers Varner, president of Varner Brokerage in Cleveland, Mississippi.
The dollar jumped on Monday as concerns grew that the latest round of US-China talks may not yield a deal between the world's largest economies before the March deadline.
The dollar index was up 0.5 percent. A stronger greenback makes commodities priced in dollar, such as cotton, more expensive for holders of other currencies.
The United States and China are trying to hammer out a deal before the March 1 deadline when US tariffs on $200 billion worth of Chinese imports are scheduled to increase to 25 percent from 10 percent.
Meanwhile, China's 2018/19 cotton output was seen at 6.04 million tonnes, up from a previous forecast of 5.94 million tonnes, the Ministry of Agriculture and Rural Affairs said in its monthly crop report.
Total futures market volume rose by 29,572 to 76,769 lots. Data showed total open interest fell 9,015 to 245,353 contracts in the previous session.
Certificated cotton stocks deliverable as of Feb. 8 totaled 127,446 480-lb bales, unchanged from 127,446 in the previous session.