Oil prices mixed after G7 talks

New York's main contract, West Texas Intermediate crude for July, added 31 cents to settle at $84.29 a barrel.

In London trade, Brent North Sea crude for July slipped one cent to $98.85 a barrel.

"The market is grasping at hopes that European leaders will somehow come to the rescue for the struggling economies and find a plan to save Spain and the rest of the eurozone," said Phil Flynn at PFG Best.

An emergency teleconference with Group of Seven finance chiefs to discuss crisis concluded with no specific plan but a pledge from those from the European Union to respond "speedily" to the debt crisis.

"There are great worries that with no resolution in the EU, Spain will not be able to recapitalize the banks and reimburse their debt," said Andy Lipow at Lipow Oil Associates.

Flynn said the oil market was "on hold" waiting "to see if Spain is going to be bailed out."

Concern has mounted that some Spanish banks could collapse without direct aid from Europe.

The head of the International Energy Agency warned Tuesday the recent moderation in world oil prices following a months-long runup remained fragile and that high prices still posed a threat to world economies.

Brent oil prices sank under $100 a barrel on Friday for the first time in eight months, hit by weak Chinese data and eurozone debt worries, but the IEA's executive director Maria van der Hoeven said it was too soon to celebrate.

"We still confront a situation where these near-triple-digit oil prices -- and in some cases it's made worse by local currency weakness -- are placing a huge burden on both domestic and national budgets," van der Hoeven said.

"That's still the case. And this has obviously contributed to the risk of an economic slowdown," she told reporters at the World Gas Conference in the Malaysian capital Kuala Lumpur.