Oil prices traded lower during Asian deals on Monday as worries about rising output and the impact of United States tariffs on demand offset supply disruptions stemming from intensified Russia-Ukraine airstrikes.
By 3:40 pm AEST (5:40 am GMT) Brent crude fell 25 cents or 0.4%, to US$67.23 per barrel, while U.S. West Texas Intermediate crude was down 24 cents or 0.3% to US$63.73 per barrel.
Ukrainian President Volodymyr Zelenskyy vowed on Sunday to retaliate by ordering more strikes deep inside Russia after Russian drone attacks on power facilities in northern and southern Ukraine.
Both countries have intensified airstrikes in recent weeks, targeting energy infrastructure and disrupting Russian oil exports.
ANZ analysts noted: "Markets remained concerned about Russian oil flows, with weekly shipments from its ports dropping to a four-week low of 2.72mb/d, according to tanker tracker data.
"Besides the geopolitical risks, the market is contemplating a surge in OPEC supply that is expected to push the market into surplus later this year."
The week started with a slew of manufacturing and export data from China, Japan and South Korea, among the world's biggest crude oil importers.
Factory activity in China unexpectedly grew in August but weakened for other Asian economies as companies began to feel the pain from U.S. tariffs, private surveys showed on Monday, clouding the outlook for the region's fragile recovery.
Brent and WTI crude posted their first decline in four months in August, down 6% or more on OPEC+ supply concerns.
Investors are eyeing the 7 September meeting between members of the Organization of the Petroleum Exporting Countries and their allies for further supply cues.
Meanwhile, U.S. crude oil production hit a record high in June, rising 133,000 barrels per day to 13.58 million bpd, according to data released by the Energy Information Administration on Friday.
