Oil futures nudged higher on Monday, extending gains on expectations of OPEC+ deepening supply cuts to shore up prices, which have fallen for four weeks on easing concern of Mid-East supply disruption brought about by the Israel-Hamas conflict.

The dollar languished near an over two-month low against its major peers on Monday, struggling to make headway on the view that U.S. rates have peaked, with attention now on how soon the Federal Reserve could begin easing monetary conditions.

U.S. import prices fell more than expected in October amid a broad decline in the costs of goods, the latest indication that inflation was retreating.

Production at U.S. factories dropped more than expected in October as strikes by the United Auto Workers (UAW) union against Detroit's "Big Three" automakers depressed motor vehicle production, but manufacturing elsewhere continued to hold up.

The number of Americans filing new claims for unemployment benefits increased to a three-month high last week, suggesting that the labor market was gradually cooling in another boost to the Federal Reserve's fight against inflation.

Asian shares took a breather on Friday as a batch of softer U.S. economic data took some of the steam out of Wall Street, but also boosted bonds in a big way while slugging oil prices in a boon for the inflation outlook.