Read MoreOil could slide further, but where's the bottom?
Brent for December fell to a low of $84.55 but also partially recovered.
"As we sold off (in early trade), pending home sales came out which misses expectations so the U.S. dollar came off and some buyers stepped in," said Bill Baruch, senior market strategist at futures for iitrader.com LLC in Chicago.
Baruch said the overall sentiment for crude was still bearish however, and forecast $75-$77 in U.S. crude.
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The Ifo, a key index of German business sentiment fell to its lowest level in two years on Monday, adding to concerns about weak demand and the risk Europe could slip into recession.
Meanwhile a senior Iranian oil official said the Organization of the Petroleum Exporting Countries was unlikely to reduce its production ceiling when it meets in November, according to Shana, Iran's oil ministry news agency.
"Trying to pick a bottom right now seems to be a risky thing to do ... without any production cut coming up or European activity picking up, which the Ifo did not point to," said Gene McGillian, senior analyst at Tradition Energy.