SINGAPORE, June 27 Reuters Oil prices edged down on Monday in a volatile session as investors stood on guard for any moves against Russian oil and gas exports that might come out of a meeting of leaders of the Group of Seven G7 nations in Germany.

The prospect of more supply tightness loomed over the market as western governments sought ways to cut Russia39;s ability to fund its war in Ukraine, even though G7 leaders were also expected to discuss a revival of the Iran nuclear deal, which might lead to more Iranian oil exports.

Members of the Organization of the Petroleum Exporting Countries OPEC and their allies including Russia, known as OPEC, will likely stick to a plan for accelerated oil output increases in August when they meet on Thursday, sources said.

But, for now, the pressing supply worries outweighed growing concerns over the potential for a global recession following a string of downbeat economic data from the U.S., the world39;s biggest oil consumer.

Brent crude futures edged down 8 cents to 113.04 a barrel by 0632 GMT after rebounding 2.8 on Friday. U.S. West Texas Intermediate crude was at 107.38 a barrel, down 24 cents, or 0.2, following a 3.2 gain in the previous session.

Both contracts fell last week for the second week in a row as interest rate hikes in key economies strengthened the dollar and fanned recession fears.

However, oil prices are well supported above 100 a barrel while the backwardation in prompt monthly spreads remained wide….