Brent crude fell 1 cent to $41.71 a barrel by 0818 GMT, paring an earlier 1.2% drop. U.S. West Texas Intermediate crude was unchanged at $39.80.
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US West Texas Intermediate (WTI) crude futures for October, due to expire on Tuesday, rose 26 cents, or 0.7%, to $39.57 a barrel at 0224 GMT.
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277.6 million LPG consumers in the country, around 15 million are not eligible for subsidy since December 2016 because of their annual taxable income exceeding Rs 10 lakh.
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Its economists now forecast real GDP to contract by 8.6 per cent in FY21, down from minus 4.5% previously.
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Brent crude was up 9 cents, or 0.2%, at $43.24 a barrel by 0230 GMT, while U.S. crude was up 10 cents, or 0.2%, to $42.21 a barrel.
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Industrial demand as a whole has declined sharply, due to restrictions in place on business activities, labour and supply shortages and credit constraints
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Brent oil futures extended gains to settle up $1.08 or 2.56% at $43.30 a barrel. U.S. crude futures settled higher by 81 cents, or 2.02% at $40.97 a barrel.
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OPEC+ producers have been reducing production since January 2017 to help support prices and reduce global oil stockpiles.
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Royal Dutch Shell will permanently shut its 110,000-barrel-per-day Tabangao facility in Philippines' Batangas province, one of only two oil refineries in the country.
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Brent crude was trading up 15 cents, or 0.4%, at $40.68 a barrel by 0055 GMT, while U.S. crude gained 18 cents, or 0.5%, to $38.46 a barrel.
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