Oil prices extended gains on Monday, propped up by a weaker dollar and tight supplies that offset recession fears.

Brent crude futures for September settlement rose $2.54, or 2.5 percent, to $103.70 a barrel by 0648 GMT, after a 2.1 percent gain on Friday.

U.S. West Texas Intermediate (WTI) crude futures for August delivery gained $2.31, or 2.4 percent, to $99.90 a barrel, after climbing 1.9 percent in the previous session.

The dollar began the week nudging down from multi-year highs. The euro last bought $1.00955 and the Japanese yen, which has tumbled about 17 percent this year, steadied at 138.37 per dollar.

Last week, Brent and WTI posted their biggest weekly drops in about a month on fears of a recession that will hit oil demand.

However, oil supplies remained tight, supporting prices. As expected, U.S. President Joe Biden's trip to Saudi Arabia failed to yield any pledge from the top Organization of the Petroleum Exporting Countries (OPEC) producer to boost oil supply.

The next meeting of OPEC and allies, including Russia, together called OPEC+, on August 3, will be closely watched as their existing output pact expires in September.

Global markets are focused this week on the resumption of Russian gas flows to Europe via the Nord Stream 1 pipeline which is scheduled to end maintenance on July 21. Governments, markets and companies fear the shutdown may be extended because of the Russia-Ukraine conflict.

"Brent crude will find support at the end of the week if Russia does not turn the gas back on to Germany after Nord Stream 1 maintenance," OANDA's senior analyst Jeffrey Halley said.

Loss of that gas would hit Germany, the world's fourth-largest economy, hard and heighten the threat of a recession.

(With input from Reuters)