West Texas Intermediate fell as much as 2.2%.
Trading was thinned by a public holiday in parts of Southeast Asia.
OPEC and non-OPEC countries have made a strong start to lowering their oil output under the first such pact in more than a decade, energy ministers said on Sunday as producers look to reduce oversupply and support prices.
Speaking to CNBC-TV18 John Kilduff, Partner at Again Capital said that prices could move up further. He expects the price to head up to USD 52 a barrel.
Oil prices climbed in Asia today with Brent breaching USD 45 a barrel following a fall in US production while raging wildfires threatened to cut Canadian output.
A weak dollar has also provided support as it makes crude cheaper for customers using other currencies.
At around 0330 GMT, US benchmark West Texas Intermediate (WTI) for delivery in June was up 31 cents, or 0.73 percent, at USD 42.95 and Brent crude for June rose 30 cents, or 0.67 percent, to USD 44.78.
Brent North Sea crude for June sagged 26 cents to USD 44.85 per barrel compared with Friday's close.
Around 1200 GMT, US benchmark West Texas Intermediate (WTI) for delivery in April added 90 cents to trade at USD 38.74 a barrel.
Prices have strengthened following talks of a production freeze, with a producers meeting mooted on March 20 in a bid to ease a global supply glut that has depressed the market.
While U.S. growth is sluggish, a series of weakening data and the collapse of asset prices across financial markets has triggered fears that the markets could lead the world into recession. Industrial production is weaker in most parts of the world, and the U.S. has been in a manufacturing recession.
The front-month contract for West Texas Intermediate (WTI) was down USD 1.57 at USD 30.05, having dipped below USD 30. It fell USD 2, or 5.9 percent, the session before.
The rise in crude oil futures was largely in tune with the rebound in its prices in Asian trade on Wednesday, halting a plunge that saw fall below USD 30 a barrel for the first time in more than 12 years but analysts warned of further pressure on the commodity.
Analysts at Barclays, Macquarie, Bank of America Merrill Lynch, Standard Chartered and Societe Generale all cut their 2016 oil forecasts this week, with Standard Chartered saying oil could fall as low as $10 per barrel
US crude's West Texas Intermediate (WTI) futures CLc1 were down 18 cents at USD 34.77 a barrel by 0104 GMT (8.04 am EDT). The contract fell 1.6 percent to USD 34.95 a barrel on Thursday.
The Federal Reserve on Tuesday started a two-day meeting where it is expected to raise rates eight years after a devastating recession opened an era of loose US monetary policy.
Brent crude fell by 4 percent to below USD 36.40 a barrel for the first time since December 2008 and US West Texas Intermediate (WTI) sank almost 3 percent below USD 34.60 a barrel.
Brent slipped below $39 per barrel for the first time since December 2008 as the IEA, which advises developed nations on energy, warned that demand growth was starting to slow
A firmer US dollar also weighed on oil, making greenback-denominated contracts more expensive for holders of other currencies. Although trading was quiet after Thanksgiving Day in the United States.
"Strikes against the Islamic State could worsen the geopolitical tensions in the oil-producing Middle East region and this supports crude prices," said Sanjeev Gupta, who heads the Asia-Pacific oil and gas practice at professional services organisation EY.
Analysts expect another build in the inventories, which would indicate weaker demand in the world's top oil consuming nation. BMI Research said the geopolitical tensions sparked by the escalation of military action against IS following the Paris attacks is unlikely to be a major influence on oil prices.
A softening of the US currency also helped bolster prices as the dollar-priced commodity becomes cheaper for holders of weaker units, spurring demand, analysts said.
Global benchmark Brent crude LCOc1 rallied for a third straight day and closed above USD 50 a barrel the first time in a month. In post-settlement trade, it briefly jumped USD 3 after an industry group reported an unexpected weekly drop in US crude stockpiles.
The dollar index currently trading down by 0.10 percent at 95.81 as against a basket of six currencies. In the overseas markets, the dollar slipped against a basket of currencies after weak US jobs data led traders to pare bets that the Fed was poised to hike interest rates as early as this month.
In late-morning Asian trade, US benchmark West Texas Intermediate for November delivery advanced 54 cents to USD 45.28 and Brent crude for November added 44 cents to USD 48.13 a barrel.