Oil prices dropped on Monday, extending a recent losing streak on concerns that an expected rise in U.S. interest rates would weaken fuel demand.

Brent crude futures for September settlement had fallen 67 cents, or 0.7 percent, to $102.53 a barrel by 0421 GMT, down for a fourth day.

U.S. West Texas Intermediate crude futures for September delivery slid 77 cents, or 0.8 percent, to $93.93 a barrel, also down for a fourth day.

Oil futures have been volatile in recent weeks as traders try to reconcile the possibilities of further interest rate hikes that could limit economic activity – and thus cut fuel demand growth – against tight supply from the disruptions in the trading of Russian barrels because of the Western sanctions amid the Ukraine conflict.

The Fed will hold its two-day policy meeting beginning Wednesday, when it is expected to hike the benchmark borrowing rate by another three-quarters of a percentage point in its aggressive campaign to cool demand and ease price pressures.

The European Union said last week that it would allow Russian state-owned companies to ship oil to third countries under an adjustment of sanctions agreed by member states last week, aiming at limiting the risks to global energy security.

However, Russian Central Bank Governor Elvira Nabiullina said on Friday that Russia would not supply oil to countries that decided to impose a price cap on its oil.

(With input from agencies)