Oil also got a boost from prospects for a fresh OPEC agreement to cut output when the producer cartel meets on Dec 17.

OPEC, facing a slide in oil prices since July of over $100 a barrel, has already agreed to cut about 2 million barrels per day (bpd) of production to support prices, and members are leaning toward more supply cuts at the meeting in Algeria.

OPEC kingpin Saudi Arabia, which has cited $75 a barrel as a "fair price" for oil, will make bigger supply cuts to some of its Asian and European customers next month, as it steps up efforts to halt the steep slide in prices.

"What might hold prices up over the short term is the OPEC decision next Wednesday," Pervan added.

"We could see some mild buying interest ahead of the meeting."

The producer cartel will fight hard to keep oil prices from falling below $40 a barrel, although near-term forecasts are for lower prices, an official with US fund manager BlackRock said on Monday.