The price of Brent crude oil prices has dropped below $60 a barrel due to concerns about oversupply in North America.

Reuters reported that Brent crude traded 28 cents lower at $59.94 and benchmark US WTI crude April futures dropped 3 cents to $50.31 a barrel.

Brent reached a low of $45.19 a barrel on 13 January 2015 after trading near $115 in June last year.

"Despite optimism about the large drop in the US rig count in recent weeks, the pace of decline has been decelerating."

However, the market has picked up in the recent days as Brent futures reached $63 a barrel last week due to decline in the US rig count.

Morgan Stanley warned that US crude stocks will build through May.

The bank was quoted by the news agency as saying: "Despite optimism about the large drop in the US rig count in recent weeks, the pace of decline has been decelerating.

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"A further slowing (in rig count) would only reinforce concerns that a large production decline could take longer."

The decline in oil prices led to the slow down of drilling operations in the US. However, Goldman Sachs said the pace of the US rig count decline was now slowing.

Goldman expects US oil production growth to reach 440,000 barrels per day by the fourth quarter.

According to analysts, a cold situation in the US may also prevent crude prices from increasing further. Most of the country’s East Coast refineries have been hit by cold weather.