The spread narrowed some 10 cents after the American Petroleum Institute released data showing crude inventories fell by 9 million barrels, compared with expectations for a 3.3 million barrel draw.
Front-month U.S. crude oil futures rose more than $1 per barrel to a high of $104.76 after the data's release.
On Wednesday, the U.S. government will release its inventory report.
Brent oil futures ended the day 38 cents higher at $107.81 per barrel. U.S. crude oil futures settled 39 cents higher at $103.53, after trading as low as $102.31.
Fears that violence in Egypt could ignite conflict in the broader Middle East, which pumps a third of the world's oil, continued to lend support to oil prices.
While oil prices had shaved some gains, Brent was still hovering at a three-month high and U.S. crude at a 14-month high.
"The majority of last week's near $5 gain is on the back of geopolitical risk premium," said Gene McGillian, analyst with Tradition Energy in Stamford, Connecticut.
The U.S. dollar index hit a fresh three-year high against a basket of currencies, creating headwinds for oil prices. A good start to the U.S. earnings season underpinned equities, which supported crude oil prices.
Commodities priced in dollars become more expensive for holders of other currencies as the dollar strengthens, weakening demand.
The spread between U.S. gasoline futures and heating oil had narrowed to its smallest point in one month, reflecting the need for traders to square positions after the previous session, Walter Zimmermann, chief technical analyst for United-ICAP, said.