Oil prices slipped on Monday as caution around US debt ceiling talks and concerns about demand recovery in China offset support from lower supplies from Canada and OPEC+ producers. The impact of voluntary production cuts by the Organization of the Petroleum Exporting Countries (OPEC) and its allies including Russia.

Oil prices slipped on Monday as caution around U.S. debt ceiling talks and concerns about demand recovery in China offset support from lower supplies from Canada and OPEC+ producers.

Brent crude futures fell 73 cents, or 0.97%, to $74.85 a barrel by 0634 GMT, while U.S. West Texas Intermediate (WTI) crude for July delivery, the more actively traded contract, slipped 73 cents, or 1.02%, to $70.96.

The June WTI contract, which expires later on Monday, fell 87 cents to $70.68 a barrel.

Last week, both oil benchmarks gained about 2%, their first weekly gain in five, after wildfires shut in large amounts of crude supply in Alberta, Canada.

The impact of voluntary production cuts by the Organization of the Petroleum Exporting Countries (OPEC) and its allies including Russia, known as OPEC+, is also being felt after going into effect this month, analysts from Goldman Sachs and JP Morgan said.

Total exports of crude and oil products from the group plunged by 1.7 million barrels per day (bpd) by May 16, JP Morgan said, adding that Russian oil exports will likely fall by late May.

On Saturday, the Group of Seven (G7) nations pledged at its annual leaders' meeting to enhance efforts to counter Russia's evasion of the price caps on its oil and fuel exports "while avoiding spillover effects and maintaining global energy supply", but did not provide details.

Such enhancements are not expected to change the supply situation for crude and oil products, the International Energy Agency's (IEA) Executive Director Fatih Birol said, adding that the agency was sticking to its analysis for now.