Oil prices slipped on Tuesday amid growing investor concerns that an escalating trade dispute between the United States and the European Union—two of the world’s largest crude consumers—could dampen economic activity and slow fuel demand growth.

Brent crude futures dropped 24 cents, or 0.35 per cent, to $68.97 a barrel early Tuesday, after closing 0.1 per cent lower in the previous session.

U.S. West Texas Intermediate crude slipped 21 cents, or 0.31 per cent, to $66.99 a barrel, extending Monday’s 0.2 per cent loss.

The August WTI contract, set to expire on Tuesday, saw limited activity, while the more actively traded September contract fell 23 cents, or 0.35 per cent, to $65.72 a barrel.

Brent crude has traded within a $5.19 range and WTI within a $5.65 range, as supply concerns eased with increased output from major producers.

At the same time, investor anxiety over the global economy—driven by shifts in U.S. trade policy—continues to weigh on sentiment.

However, the recent weakening of the U.S. dollar has offered some support to crude prices, making oil cheaper for holders of other currencies.

“Prices have slipped as trade war concerns offset the support by a softer U.S. dollar,” IG market analyst Tony Sycamore noted in a commentary.