Following commitments from major producers Saudi Arabia and Russia to continue supply trims through September, which would further constrain supplies, oil prices have been hovering around their peak since mid-April.

Brent crude dropped 24 cents to $86 per barrel, while U.S. West Texas Intermediate crude dipped 27 cents $82.55 per barrel.

Prices have been steadily rising, with both important benchmarks recording their sixth straight weekly rises last week.

According to PVM analyst Tamas Varga, the fundamental global macroeconomic environment continues to look positive despite the United States losing its top credit rating last week.

Reviving service sectors are balancing out slowing global factory output, inflation is being restrained, the U.S. labor market is robust, and major economies' peak interest rates may be approaching.

However, this week's economic statistics from China will be scrutinized in order to see whether Beijing is willing to implement additional stimulus measures to boost the second-largest economy in the world after a weak second quarter.