Oil prices ended mixed on Monday as the investors were uncertain whether crude supplies will increase and demand will be pressured by the recent surge in energy costs, the strong dollar and rising COVID-19 cases.
Brent futures settled down 0.2 percent to $82.05 a barrel while US West Texas Intermediate (WTI) crude rose 0.1 percent, to $80.88.
In early trading, the oil market factored in speculation that President Joe Biden's administration could fight high prices by releasing crude oil from the US Strategic Petroleum Reserve.
Hoever, skepticism about that approach caused US crude to edge higher, according to a Reuters report citing John Kilduff, partner at Again Capital LLC in New York.
The US dollar touched 16-month high against a basket of currencies as investors worried about the global economy, putting pressure on oil.
A stronger dollar makes oil more expensive for buyers using other currencies.
Last week, US energy firms added oil and natural gas rigs for a third week in a row, encouraged by a 65 percent increase in US crude prices so far this year.
US shale production in December is expected to reach prepandemic levels of 8.68 million barrels a day, according to Rystad Energy. Meanwhile there are indications demand may be slowing due to heightened coronavirus cases and inflation.
The Organization of the Petroleum Exporting Countries (OPEC) last week cut its world oil demand forecast for the fourth quarter by 330,000 bpd from last month's forecast, as high energy prices hampered economic recovery from the COVID-19 pandemic.
According to a Reuters report, UAE Energy Minister Suhail al-Mazrouei said all indications point to an oil supply surplus in the first quarter of 2022.
Europe has again become the epicenter of the COVID-19 pandemic, prompting some governments to consider re-imposing lockdowns, while China is battling the spread of its biggest outbreak caused by the Delta variant.
Royal Dutch Shell PLC said it would scrap its dual share structure and move its head office to Britain from the Netherlands.
-With agency inputs