Oil prices fell by 1 per cent this morning after Saudi Arabia's oil minister signalled satisfaction with market conditions.
In an interview, Ali al-Naimi said that the market was much healthier than before and that Opec may not need to change output.
US crude stood 54 cents lower at $59.35 a barrel early this morning, having fallen as much as 82 cents earlier in the day, and offsetting Friday's 18 cent gain. London Brent crude slid 52 cents to $58.49 a barrel.
Mr Naimi's first direct comments on the condition of the market since prices rebounded to nearly $60 a barrel, from a 20-month low under $50 in mid-January, came as a surprise to some analysts who had been braced for more hawkish sentiment.
Traders are focusing on Opec's likely next move when it meets on March 15th, after the group's pledged two output curbs of a total 1.7 million barrels per day to shore up prices and drain inventories.