USA crude settled up 1.44 percent at $70.46, while Brent settled at $73.07, up 0.68 percent.
China on Monday rebuffed renewed threats on trade from Washington, after US PresidentDonald Trump threatened to impose further tariffs on all imported Chinese goods.
US officials recently issued a list of a range of Chinese imports Trump wants to impose new tariffs on including many food products as well as tobacco, coal, and chemicals.
Monday's continuation of trade angst sees Japan's Nikkei 225 index down around 1.3% so far, while the Tokyo Topix index is relatively unharmed at -0.14%; Shanghai's CSI 300 index is in the red for -0.15%, and Hong Kong's Hang Seng index is down -0.2% for Monday.
Britain's FTSE 100 trades 0.4 percent down at 7,647.31 points, while mid-cap FTSE 250 declined 0.4 percent to 20,833.75 points. "Commodities are also mostly trading higher", analysts at JPMorgan said in a note to clients.
"While oil prices were the primary beneficiary of the weekend's headline battle between President Trump and Iranian President Rouhani, that boost started to fizzle as traders then veered to oversupply concerns", said Stephen Innes, head of Asia-Pacific trading at Oanda trading group. Brent eased 10 cents to $72.97.
US crude was last off 16 cents at $68.1 a barrel after posting its third straight weekly loss. The fixing matched market forecasts and dragged the spot rate lower.
Fed non-voter Bullard spoke with a dovish tone when he stated that United States rates were high by global standards, that Fed forecasts indicate further gradual tightening but that curve inversion may be imminent and would be a bearish signal. US gold futures for August delivery were almost unchanged at $1,231 an ounce.
Major exporters closed lower, with the electric appliances sector falling 1% and automakers declining 1.2% Uniqlo-owner Fast Retailing dropped 5.7%.
In March, Premier Li Keqiang announced a cut in the annual budget deficit target from 3 percent of gross domestic product in 2017, the first since 2012, but the finance ministry said fiscal policy remained supportive for growth, given a jump in planned special bond issuance this year.
The yield on USA 10-year Treasuries rose 7 basis points to a month-high 2.96 percent as investors weighed up the impact of a new policy framework for the Bank of Japan, which has been buying government bonds as a means to stir inflation in the world's third-biggest economy.
President Donald Trump lashed out at China and the European Union for their weak currencies and said a stronger dollar and rising interest rates are undermining America's "competitive edge", taking a fresh jab at the Federal Reserve. It pledged to buy 10-year bonds at yield of 0.11%, the same level at which it has intervened in the past.
President calls taping 'unheard of and perhaps illegal'
Since then, Cohen has publicly distanced himself from the president and remains under investigation by the government. With his tweet, Trump signaled open warfare on Cohen, a longtime fixer he had until now tried to keep by his side.
Multiple victims in Toronto shooting
Merella Fernandez from CTV News tweeted that police have "buses in the area to take witnesses to divisions to be interviewed". At least nine people have been shot after gunfire rang out in a busy Toronto neighbourhood on Sunday night.
North blasts South for sticking with US alliance
Trump appeared to toward North Korea this week, saying that a more gradual option of denuclearization was a possibility. The North, however, kept USA defence officials waiting for three hours before calling to cancel, the diplomats said .
‘Lahu ka lagaan’ ends: Sanitary products made tax free
It is expected that the council would decide on revision of tax rates on vending machines and lithium ion batteries among others. Taxpayers who are yet to register under the GST have been given a final extension till August 31.