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Oil prices dipped on Wednesday as potential damage to the global economy and fuel demand from the intensifying Sino-US trade dispute continued to cast a shadow over the market, Reuters reports.

International benchmark Brent crude futures were at $58.75 a barrel by 0642 GMT, down 19 cents, or 0.32%, from their previous settlement and trading near seven-month lows.

US West Texas Intermediate (WTI) crude futures were down 12 cents, or 0.22%, from their last close at $53.51 per barrel.

Brent prices have plunged more than 9% in the past week after US President Donald Trump said he would slap a 10% tariff on a further $300 billion in Chinese imports starting on Sept. 1, sending global equity markets into a tailspin.

"Crude oil prices remained under pressure as investors grappled with the impact of the trade conflict," ANZ bank said in a note.

But Trump on Tuesday dismissed fears the trade row with China could be drawn out.

“The most significant outcome of the ramp-up in tariff measures will be through increased economic and trade uncertainties, negatively impacting physical oil and gas demand and market sentiment,” Fitch Solutions said in a note.