Oil prices rebound after steep slide

Crude oil prices have closed higher, staging a small rebound from last week's steep losses as a slightly weakening US dollar offered some support.

The US benchmark futures contract, West Texas Intermediate (WTI) for November delivery, finished trade at $US90.34 a barrel, up 60 US cents from Friday's close.

Brent North Sea crude for November, the European benchmark, advanced 48 US cents to $US92.99 a barrel in London trade.

Oil prices have been on a downward slide for months.

Last week WTI fell to $US88.18, a level last recorded in April 2013, while Brent hit $US91.48, its lowest level since June 2012.

On Monday, both contracts had traded lower earlier in the day amid a backdrop of weak demand growth and flush oil supplies, but rallied to a positive finish.

"It seems that we are attempting to find a bottom and to stabilise. The fact is we keep grinding lower under worries about slowing economic conditions with Europe and China, and the ample supplies in the world that are trying to find a home," said Gene McGillian of Tradition Energy.

"Today the dollar is a little bit of pressure, probably helping a little bit the market," he added.

The US dollar, which has been rallying strongly for several weeks, hitting its highest level on Friday in two years against the euro and six years against the yen, eased slightly on Monday.

A weaker US dollar tends to make US dollar-priced crude oil and other commodities more attractive to buyers using stronger currencies, lifting demand.

The greenback's slip was "opening the door for a little bit of a commodity rally," said Robert Yawger of Mizuho Securities USA.