Image credit: Global Risk Management

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Oil prices continued the downtrend yesterday with intraday swings. Weighing on prices is the escalating trade war between China and the U.S. China will impose additional tariffs on U.S. goods - also on fuel and steel; however, crude oil imports will be exempt. Markets worry that the various trade tariffs could affect economic growth and hence demand for goods, including oil.

A dark horse for oil prices is the coming U.S. sanctions against Iran, taking a huge amount of oil off the market from November. It remains uncertain how many oil importing countries will follow the U.S. demand to refrain from purchasing Iranian oil.

Today, the monthly IEA monthly oil market report is released. Tonight, the weekly oil rig count from Baker Hughes will indicate if the number of active U.S. rigs continues the decline of if last week's decline was a one-off.

There are a couple of key economic data releases today, starting with UK GDP and Manufacturing production. Later today, the U.S. Core CPI and CPI will be released.