Brent crude futures fell as much as 6% in early trading on Monday before recovering to $41.29 per barrel at 05:08 GMT, still down 4.2% since their last settlement, according to Reuters.
U.S. crude futures were down 4.63% at $38.49 a barrel.
Oil prices have fallen by as much as 70% since mid-2014 as producers have pumped 1 to 2 million barrels of crude every day in excess of demand, leaving storage tanks around the world filled to the rims with unsold fuel.
Read alsoBloomberg: Oil-freeze talks end in failure amid Saudi demands over IranSunday's meeting in Qatar's capital Doha had been expected to finalize a deal to freeze output at January levels until October 2016 in an attempt to slow ballooning oversupply.
But the agreement fell apart after top exporter Saudi Arabia demanded that Iran, which was not represented, should also sign up.
