Brent and U.S. crude prices recovered from an early sell-off to three-week lows on Monday, rising as record flooding in Canada's main oil producing province threatened exports to the United States.
Major Canadian pipelines that move almost 1 million barrels per day (bpd) of Alberta oil sands crude remained shut on Monday after a spill on a smaller line was discovered over the weekend, a spokesman for operator Enbridge said.
The threat to Canadian exports overshadowed fears that a credit crunch in China could hit demand in the world's No. 2 oil consumer, which sent Brent beneath $100 a barrel overnight, extending a near-5-percent slide last week.
The U.S. West Texas Intermediate (WTI) benchmark had the bigger bounce - more than $3 a barrel off a trough of $92.67, the lowest since June 4. WTI's discount to Brent fell to its lowest since November 2011. The Brent-WTI spread, as it's known by traders narrowed to as little as $5.91 a barrel.
"Imports from Canada should be down," said Phil Flynn, analyst at Price Futures Group in Chicago. "That's supporting U.S. crude futures versus Brent."
Brent crude for August delivery settled up 25 cents at $101.16 a barrel, after bottoming at $99.67. Last week Brent lost 4.7 percent.
U.S. oil for August delivery settled up $1.49 at $95.18 a barrel, rallying off of a three-week low of $92.67.