NEW YORK (AP) ― Last week’s spike in the price of oil may have been a little overdone.

Benchmark U.S. crude dropped 1.4 percent in New York, paring back some of the 9.4 percent increase on Friday. Oil fell by $1.21 to end the day at $83.75 per barrel.

Brent crude also dropped by 46 cents, or less than a percent, to finish at $97.34 per barrel in London.

Friday’s big gains followed a surprisingly bold plan by European leaders to manage the continent’s debt crisis. Monday brought a reminder that the global economy is far from firing on all cylinders.

Reports showed weakening industrial production in China and a decline in U.S. manufacturing. That signals more trouble ahead for the global economy, which could suppress demand for oil.

In China, which is expected to drive world oil demand growth, manufacturing activity in June grew at the slowest pace in seven months.

In the U.S., the Institute for Supply Management said manufacturing activity declined in June for the first time in nearly three years. The slowdown comes as Europe’s financial crisis weakens demand for U.S.-made goods.