Oil prices dipped on Monday as concerns over European economic recession offset supply fears.

Germany's exports rose strongly in November, partially offsetting a sharp drop the previous month. However, a dip in industrial production darkened the picture for Europe's biggest economy.

Data showed German industrial output declined 0.6 percent in November as factories produced fewer investment and consumer goods, a sign that growth in Europe's largest economy may have stalled.

However, crude still traded above the key 100-dollar-per-barrel level amid growing concerns that tension between Iran and Western countries could disrupt Middle East oil supplies.

According to Iranian media, Iran's leadership has decided to order the closure of the key Strait of Hormuz if the country's oil exports are undermined by U.S. or European sanctions.

Light, sweet crude for February delivery slipped 25 cents, or 0. 25 percent to settle at 101.31 dollars a barrel on the New York Mercantile Exchange. In London, Brent crude for February delivery also declined and last traded over 112 dollars a barrel.