The price of Brent crude oil dropped more than 1% on Monday to around $62 a barrel due to a stronger US dollar and an increase in crude production from Libya.
Reuters reported that Brent crude traded at $62.08 a barrel and US crude dropped 55 cents to $49.21.
The US dollar has reached a 11-year high against major currencies following interest rate cuts in China.
The lower production from Libya and Iraq has supported prices in the initial two months of the year due to disruption to oil supplies from members of the Organisation of the Petroleum Exporting Countries (OPEC).
However, production from various OPEC countries is expected to be recovering.
An Noc official said oil output in Libya has now recovered to over 400,000 barrels per day (bpd).
The declining rig numbers in the US support oil prices as they indicate reduction in supplies.
A survey revealed that the number of oil rigs declined by 33 last week to 986, the smallest drop in 2015.
The refinery strike in the US at nine refineries and chemical facilities across the country has also affected oil markets.
A Reuters poll indicated that oil prices should recover in the second half of 2015 as the decline in the market over the last year starts to curb output.