Oil prices fell more than $1 a barrel, losing more than 1.5 percent in early trade on Monday, after disappointing Chinese inflation data and a lack of clarity over Beijing's economic stimulus plans raised concerns about demand.
By 0020 GMT, Brent crude futures were down $1.26, or 1.59 percent, at $77.78 a barrel, while U.S. West Texas Intermediate (WTI) crude futures were down $1.20, or 1.59 percent, at $74.36 a barrel.
Negative news from China outweighed market concerns about a possible Israeli response to Iran's Oct. 1 missile attack that could disrupt oil production, despite the United States warning Israel against targeting Iranian energy infrastructure.
Deflationary pressures in China worsened in September, according to official data released Saturday, and a news conference held the same day raised investor speculation about the overall size of the stimulus package to revive the struggling economy.
Crude oil prices rose one percent for the week on Friday as investors assessed the potential for supply disruptions in the Middle East and the impact of Hurricane Milton on fuel demand in Florida.
The United States on Friday expanded sanctions on Iran in response to its Oct. 1 attack on Israel, targeting its stealth fleet that illegally transports oil supplies across the world.
The impact of Hurricane Milton helped boost short-term demand in the US, with evacuations supporting gasoline consumption, but weak demand dominated the fundamentals outlook.
