Oil prices fell on Monday after China threatened to impose tariffs on American crude imports late last week, in the ongoing trade dispute between the countries. Meanwhile, supply from OPEC (organization of petroleum exporting countries) is also expected to rise after this week meet.

International crude oil benchmark new was at $72.98, down by 0.6 percent or 46 cents. US' West Texas Intermediate (WTI) was at its lowest since April after it fell to $63.59 per barrel around 12:05 pm on Monday, down by 1.6 percent or $1.07 from its last close.

Last week, US President imposed 25 percent tariffs on $50 billion worth of Chinese imports from July 6. As one of the top importers, China retaliated by saying that it will levy the first round of tariffs on US agriculture products, cars worth $34 billion from July 6, while oil and coal will be included later. The announcement came less than 12 hours after the US declared the sanctions.

Following the news, oil retailers in India were trading higher. The share prices of IOC (Indian Oil Corporation Ltd), HPCL (Hindustan Petroleum Corporation Ltd) and BPCL (Bharat Petroleum Corporation Ltd) rose as much as 6 percent on Monday.