Oil fell $1 a barrel to below $58 on Monday, reversing some of the previous session's gain, pressured by falling European equities and caution over the pace of any global recovery.
The oil price hit a six-month high of $58.75 on Friday as economic data showed fewer-than-expected U.S. jobs were lost in April and stress test results lifted some uncertainty over the health of major American banks.
Oil prices are driven by perceptions that the economic outlook is less pessimistic that previously thought. But the growth numbers we could be seeing from developed economies may not justify such price levels, said David Moore, a commodities strategist at Commonwealth Bank of Australia.
U.S. crude fell $1.06 to $57.57 a barrel by 0816 GMT (4:16 a.m. EDT). London Brent crude was off 89 cents to $57.25.
Encouraging news from China, the world's third-largest economy, offered oil some support.
A top Chinese central banker said the government's stimulus plan has worked better than expected, while crude imports data showed a spike in demand.
Oil, which has plummeted from a record high above $147 a barrel reached last year, has risen over the past three months on expectations that the economic recession may be easing.
(Reporting by Fayen Wong and Alex Lawler in London, editing by Anthony Barker)