Brent crude oil prices rose more than a dollar to above $60.50 a barrel on Tuesday due to firmer Asian markets and a drop in U.S. rig counts by 33 per cent.
Besides, the U.S. WTI futures CLc1 also rose by 42 cents to $50.01 a barrel.
But analysts warned that the price may fall marginally because the crude market had remained oversupplied.
Most Asian stock markets edged up on Tuesday, making commodities priced in the greenback slightly cheaper for holders of other currencies.
Despite the slowing rig count, U.S. production as well as output in the Middle East remains high, adding to an oversupplied market that could keep a lid on oil prices.
According to analysts, the sharp drop in oil prices, down from over $100 last June, has, however, come as a boon for Asian importers who are seeing huge benefits as their fuel costs drop.
“Cheap oil is a blessing for Asia, the drop in oil prices provide windfall effects for Asia’s large net oil importers,” ABN Amro said.
ABN said it expected cheap oil to improve growth in India, Hong Kong, Singapore and Thailand.
It cautioned that China’s slowing economy could still turn into a hard landing despite the gains from lower energy prices.
WATCH: Governor Yahaya Bello's Roadmap to Hope 2023