Brent crude futures fell by 28 cents, or 0.4%, reaching $76.23 a barrel by 0800 GMT, following a Friday close that marked its highest level since October 14.
Similarly, U.S. West Texas Intermediate crude decreased by 27 cents, or 0.4%, to $73.69 a barrel after also closing at its highest since October 11 on Friday.
Previously, oil had seen gains over five consecutive sessions, buoyed by expectations of increased demand due to colder weather in the Northern Hemisphere and additional fiscal stimulus from China aimed at rejuvenating its struggling economy.
However, the strength of the dollar remains a focal point for investors, as noted by Priyanka Sachdeva, a senior market analyst at Phillip Nova, in a report released on Monday.
The dollar hovered near a two-year high on Monday, making dollar-denominated commodities more expensive for buyers.
Market participants are also looking forward to economic updates for insights into the Federal Reserve's interest rate trajectory and energy consumption trends.
The minutes from the Fed's most recent meeting are scheduled for release on Wednesday, while the payroll report for December will be available on Friday.
On another note, Saudi Aramco, the leading oil exporter globally, announced an increase in crude prices for Asian customers in February, marking the first rise in three months.
Concerns are emerging regarding future oil shipments from Iran and Russia, particularly with the possibility of heightened sanctions against both nations.
The Biden administration is reportedly planning to implement additional sanctions on Russia in response to its ongoing conflict in Ukraine, targeting its oil revenues through measures against tankers transporting Russian crude, according to two sources familiar with the situation.
Goldman Sachs anticipates that Iran's oil production and exports may decline by the second quarter due to expected policy shifts and stricter sanctions from the incoming administration of President Donald Trump.
They project that output from the OPEC member could decrease by 300,000 barrels per day, bringing production down to 3.25 million bpd by the second quarter.
The number of oil rigs in the U.S. dropped by one to 482 last week, according to a report from Baker Hughes released on Friday.
However, the global oil market is facing a supply surplus this year. Analysts expect that an increase in non-OPEC supplies will mostly balance out the rise in global demand, especially with the potential for more production in the U.S. under Trump.