NNA - Oil prices fell more than a dollar a barrel on Monday as China's ailing property sector sparked demand worries, causing traders to reassess the supply risk premium from escalating tensions in the Middle East.

Brent crude futures fell $1.15, or 1.4%, to settle at $82.40 a barrel, while U.S. West Texas Intermediate crude futures dropped by $1.23, or 1.6%, at $76.78 per barrel.

Both contracts settled lower for the first time in four sessions as attention shifted to demand concerns in China, where a real estate crisis deepened with a Hong Kong court ordering the liquidation of property giant China Evergrande Group.

The deepening real estate crisis is a blow to investor confidence in the top oil importer's economy, with earlier data showing slower than expected activity.

"The situation in China is the biggest headwind to the whole market, that is why the market keeps backing off from the war risk premium," said John Kilduff, partner at Again Capital LLC.

Both benchmarks had gained about 1.5% early in Monday trade, with Brent prices touching their highest since early November after a fuel tanker was hit by a missile in the Red Sea and U.S. troops were attacked in Jordan near the Syrian border. The events mark a major escalation of tensions that have engulfed the Middle East.--Reuters 

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