Crude futures hit three-week lows on Monday as Greece shut its banks and imposed capital controls, causing widespread risk aversion, while Iran looked likely to extend nuclear negotiations with the West to export more of its oil into an oversupplied market.
The dollar surged against the euro to early June highs on worries over the Greek crisis before retreating in the New York trading session for crude, limiting the downside for oil. A softer dollar makes commodities priced in the greenback more affordable for holders of other currencies.
U.S. crude closed down $1.30, or 2.18 percent, at $58.33 a barrel. Brent crude was down $1.20 at $62.02 a barrel. It had fallen almost $2 in European trading to its lowest since June 5.