Oil prices fell on concerns over a slowdown in the Chinese economy. The Chinese manufacturing PMI declined to 49.7 in August from 50.0 in July, in line with expectations, according to the Chinese government. It was the lowest level since August 2012.

A reading above the 50 mark indicates expansion, a reading below 50 indicates contraction.

"There is insufficient growth momentum in the country's manufacturing sector," Zhao Qinghe, an economist at the National Bureau of Statistics, said.

The services PMI fell to 53.4 in August from 53.9 in July.

The final Chinese Markit/Caixin manufacturing PMI declined to 47.3 in August from 47.8 in July, beating the preliminary reading of a fall to 47.1. It was the lowest level since March 2009. The decline was driven by falls in total new orders and new export business.

The Caixin/Markit Services Purchasing Managers' Index (PMI) for China dropped to 51.5 in August from 53.8 in July, missing expectations for a rise to 53.9. The decline was driven by a weaker increase in new orders.

Market participants are awaiting the release of U.S. crude oil inventories data. The American Petroleum Institute (API) is scheduled to release its U.S. oil inventories data later in the day, and U.S. oil inventories data from the U.S. Energy Information Administration is expected on Wednesday.

WTI crude oil for October delivery decreased to $45.76 a barrel on the New York Mercantile Exchange.

Brent crude oil for October fell to $51.89 a barrel on ICE Futures Europe.