North Sea Brent crude oil rebounded more than $1 per barrel on Monday, recovering to $105 from eight-month lows on hopes that global economic growth would bring higher demand.
Brent futures for May rose $1.05 per barrel to a high of $105.17 before easing back slightly to trade around $105.05 by 0839 GMT.
Prices hit an eight-month low of $103.62 per barrel on Friday after disappointing US jobs data, capping its worst week since June, but traders said the sell-off may have been overdone.
US crude rose 33 cents to $93.03 per barrel, after logging its biggest weekly loss in more than six months.
Oil prices are nonetheless expected to trade in a tight range this week ahead of a spate of economic data from China that will throw light on growth pace and monetary policy in the world's second-biggest oil consumer.
"The oil markets are currently enjoying the support of upcoming liquidity after the Bank of Japan announcement last week, but they are still digesting the disappointing jobs data from the US," said Ker Chung Yang, senior investment analyst at Phillip Futures in Singapore.
"The weak undertone will continue until data from China comes out this week."
While an intense burst of monetary stimulus from Tokyo - which has promised to inject about $1.4 trillion into the economy in less than two years - will support the outlook for oil, weak data from top consumer the US will keep gains in check.
American employers hired at the weakest pace in nine months in March, adding 88,000 jobs in March compared with expectations of 200,000, data showed on Friday, stoking worries about the health of the world's largest economy.
"The theme for US economic data for the month of March is likely to be deceleration. In other words, growth and expansion are likely to continue, but at a slower pace than in February," Jason Schenker, president of Prestige Economics said in a report over the weekend.
Support may emerge in coming weeks from China's economic growth data for the quarter ended 31 March, which may show continuing evidence of a moderate recovery, with growth expected at 8% from 7.9% in the last quarter of 2012.
Industrial output growth is also expected to be steady while inflation may have slowed in March, increasing the likelihood that the central bank will continue to maintain a benign monetary policy.
Brent, which has dropped by $15 since hitting a peak in February, may draw support from supply and geopolitical worries after Iran's weekend talks with western powers ended without a resolution, prolonging a stand-off over Tehran's disputed nuclear programme.
US Secretary of State John Kerry said on Sunday world powers would pursue further talks with Iran, but stressed that the process could not go on forever.
However, Norway supply worries eased after a last minute wage agreement deal averted a strike that could have disrupted the country's oil and gas industry as well as supplies.
Norway is the world's seventh largest oil exporter and second biggest piped gas supplier, and a strike last year pushed global oil prices up by around $2 per barrel.
