Crude oil futures drifted down sharply on Monday, as worries about energy demand resurfaced on disappointing trade data from China.
After some positive spells in recent sessions amid hopes the OPEC-led supply cuts and optimism about U.S.-China trade discussions, crude oil prices have retreated on concerns about near term energy demand.
Crude oil futures for February ended down $1.08, or 2.1%, at $50.51 a barrel.
After nine successive days of gains, crude oil futures ended down $1.00, or 1.9%, at $51.59 a barrel on Friday, due largely to profit taking and on concerns about economic slowdown in China.
On Monday, data from General Administration of Customs showed China's exports and imports in December declined at the worst rates in two years, adding to evidence of a rapid slowdown in the economy amid the trade war with the US and weakening global activity.
Exports dropped 4.4% year-on-year in December, the data showed. That was in contrast to the 3% gain economists had predicted. Imports decreased 7.6% from a year ago, defying expectations for a 5% rise. Both exports and imports outcome was the worst since 2016. In December, the trade surplus was $57.1 billion.
Meanwhile, Saudi Energy Minister Khalid al-Falih said at a conference in Abu Dhabi that the oil market was "on the right track" and there was no need for an extraordinary OPEC meeting before its next planned gathering in April.
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