Oil prices dipped on Monday as a strong dollar weighed on markets and Canadian oil sands production was expected to increase this week.

US West Texas Intermediate crude futures were trading at 49.15 per barrel at 6 GMT, down 18 cents from the last settlement.

The dollar is gaining strength against most currencies as the US Federal Reserve is expected to raise interest rates this summer.

On the output front, Canadian oil sands producers are planning to restart operations. Prices edged up in the morning on the start of the American summer driving season and a fall in US production.

However, that didn't last long as a stronger dollar and an output rise weighed on sentiment.