The price of Brent crude oil stabilised today as increasing US crude inventories neutralised the worries over renewed violence in Yemen.
Reuters reported that Brent crude dropped 40 cents to $62.33 a barrel, and US crude was down 30 cents to $55.86 a barrel.
Concerns on possible supply disruption and indications of stronger global demand have forced oil prices to increase by around $10 this month.
It was the 15th straight weekly build for crude stocks, and US commercial inventories reached a record high.
Several experts have, however, said the weekly government data is misguiding, and the production has probably not started dropping yet, against reduced drilling rigs.
BNP Paribas analysts said in a note: "We still see a fundamental excess of crude supplies persisting, at least for the next few months."
According to several executives, developers may start work in oilfields that looked uncompetitive following the oil price decline, as costs of fracking a shale well in the US is dropping faster than anticipated.