Oil prices stabilised on Monday, after a 2.0 per cent slide on Friday, as the number of rigs drilling for new oil in the United States dipped.
The markets were nearly flat on expectations that Saudi Arabia would continue to restrain its output to support the market.
US West Texas Intermediate (WTI) crude futures were trading at $49.38 per barrel at 0702 GMT, up 9 cents from their last close.
Brent crude futures were flat from their last close, at $55.62 a barrel, reports Reuters.
Trading activity was low on Monday due to the Columbus Day holiday in the United States, although markets there are open.
Oil tumbled by 2.0 per cent on Friday, with WTI dipping back below $50 per barrel, as concerns of overproduction re-surfaced.
But traders said a reported cut in the number of US oil rigs drilling for new production had halted the price fall.
The US rig count fell by two to 748 last week, General Electric Co’s Baker Hughes energy services firm said on Friday.
