On Monday, oil declined in a volatile session as investors waited for any moves against Russian oil and gas exports that might come out of a meeting of the Group of Seven G 7 nations in Germany.
The prospect of more supply tightness loomed over the market as western governments tried to cut Russia's ability to fund its war in Ukraine, even though G 7 leaders were expected to discuss a revival of the Iran nuclear deal, which could lead to more Iranian oil exports.
Sources said that the Organization of the Petroleum Exporting Countries OPEC and their allies, including Russia, will likely stick to a plan for accelerated oil output increases in August when they meet on Thursday.
There were concerns over the potential for a global recession following a string of downbeat economic data from the U.S. the world's biggest oil consumer.
The price of crude futures fell by 8 cents to $113.04 a barrel by 0632 GMT after rebounding 2.8% on Friday.
U.S. West Texas Intermediate crude was at $107.38 a barrel, down 24 cents, or 0.2%, after a 3.2% gain in the previous session. Both contracts fell last week for the second week in a row due to interest rate hikes in key economies that strengthened the dollar and fanned recession fears.
Oil prices are well supported above $100 a barrel, while the backwardation in prompt monthly spreads remained wide.
Backwardation is when futures prices are higher than prices for delivery in later months, indicating limited supplies.
The G 7 leaders who started their meeting on Sunday are expected to discuss options for dealing with rising energy prices and replacing Russian oil and gas imports, as well as further sanctions that do not exacerbate inflation.
A possible price cap on Russian oil exports will be put in place to reduce Moscow's revenues while limiting damage to other economies.