Despite support from Middle East conflict, oil prices slumped over 1% on Monday as investors exercised worries before Fed policy meeting and China's manufacturing data that is scheduled for release this week.

Brent crude dipped 1% to $89.51 per barrel meanwhile US WTI slipped 1.3% at $84.41 per barrel.

Investors are keeping an eye out for any indications of an economic slowdown that would impact fuel consumption in the world's largest oil consumer. These indicators include the conclusion of Wednesday's U.S. Fed meeting, U.S. jobs data, and Apple Inc.'s earnings.

It is largely anticipated that the Federal Reserve would maintain current interest rates, and the central banks of Japan and Britain will also likely examine their policies.

This week, China will release its manufacturing and services PMIs for October. Investors will be watching for additional indications that, as a result of Beijing's encouraging actions, the economy of the largest crude importer in the world is stabilizing and fuel demand is increasing.