Oil prices dived Monday amid globe equity markets selloff.

The Chinese stock markets had their worst day in eight years with the benchmark Shanghai Composite Index tumbling 8.49 percent to close at 3209.91 points Monday.

U.S. stocks plummeted in the opening on Monday, with the Dow Jones Industrial Average sliding below 16,000 for the first time since February 2014, as a rout in global markets continued to intensify.

European equities also dived on Monday following previous session's deep decline, as the Stoxx Europe 600 was down over 6 percent and Germany's DAX fell 4 percent.

The turmoil of stock market spooked worries that a slowdown in global economy growth could reduce the crude demand.

The ample supplies of crude continued to weigh on the market. Iran planned to raise oil production at any cost to defend the country's market share, said its Oil Minister Bijan Namdar Zanganeh.

The West Texas Intermediate for September delivery moved down 2.21 U.S. dollars to settle at 38.24 dollars a barrel on the New York Mercantile Exchange, while Brent crude for October delivery decreased 2.77 dollars to close at 42.69 dollars a barrel on the London ICE Future Exchange.