Brent crude prices steadied to $60 a barrel on Tuesday after a sharp drop in the earlier session due to a continuous fall in the US rig count.
Reuters reported that front-month Brent futures were trading up 53 cents at $60.07 a barrel, and US WTI futures increased 41 cents to $50.01 a barrel.
Analysts said a decline in US rig counts is also increasing oil prices. However higher US and Middle East production is reported to maintain the supply glut
Morgan Stanley was quoted by the news agency as saying, "Saudi, UAE, Iraqi and other Middle East production and exports (are) all higher TYD (to year date) adding to supply pressure."
Analysts said the sharp drop in oil prices helped Asian importers to drop their fuel costs.
ABN AMRO said: "Cheap oil is a blessing for Asia, the drop in oil prices provide windfall effects for Asia’s large net oil importers."
The bank said it anticipated cheap oil to improve growth in India, Hong Kong, Singapore and Thailand. However, the slowing economy in China is expected to transfer into a hard landing, even with the gains from lower energy prices.