Oil prices fell more than $1 on Monday as investors continued to dump risky assets on worries about weaker growth in emerging markets.
Global equities markets extended losses from last week on concerns about China's economic slowdown and expectations that the U.S. Federal Reserve will scale back its bond buying by another $10 billion.
The U.S. government also announced weaker-than-expected new home sales data Monday, causing U.S. equities to give back early gains and triggering a correlated dip in Brent and U.S. crude oil futures prices.
The Fed will conclude its regular two-day meeting on Wednesday. Analysts said the central bank was intent on cutting the stimulus again in spite of the brutal selloff of emerging market assets in Turkey, Argentina and elsewhere.