Crude oil futures pared early gains and settled lower on Monday.
Oil prices moved higher earlier in the session after Saudi Arabia substantially raised crude prices for July.
West Texas Intermediate Crude oil futures for July ended lower by $0.37 or about 0.3% at $118.50, after climbing to a high of $121 a barrel earlier in the session.
Brent crude futures rose to $121.85 a barrel before dropping down to $118.85.
Saudi Arabia's Aramco raised prices for customers in Asia, northwestern Europe, and the Mediterrranean while prices for U.S. customers remain unchanged.
The July official selling price (OSP) for its flagship Arab light crude to Asia has been hiked by $2.10 from June to a $6.50 premium, the highest since May - suggesting a strong demand outlook in the summer while supply remains tight.
The price increase followed a decision last week by the Organization of the Petroleum Exporting Countries and allies, together called OPEC+, to boost output for July and August by 648,000 barrels per day, or 50% more than previously planned.
