NEW YORK: Oil futures seesawed in volatile trading as the conflict in Yemen and falling US rig counts lent support, while ample global supply kept market participants cautious after prices reached 2015 peaks last week.

The number of active US oil-drilling rigs has fallen for a record 20 weeks in a row to its lowest since 2010, according to data from oil services company Baker Hughes, fueling expectations production will drop.

But US commercial crude inventories have risen for 15 straight weeks to a record 489 million barrels.

Brent June crude was down 15 cents at $65.13 a barrel at 12:15 p.m. EDT (1615 GMT), having swung from $64.40 to $65.61.

US June crude was up 30 cents at $57.45, having traded from $56.71 to $57.89.

Brent’s premium to US crude pushed to $8.33 a barrel on Monday, but fell below $7 after it did not reach Friday’s $8.43 a barrel peak.

“Sustaining the recent oil price rally requires firmer demand and a tangible supply response,” analysts at Barclays said in a research note.

Analysts at Bank of America Merrill Lynch raised their oil forecast for Brent and US crude, while voicing some caution about ample supply.

“The market seems to have found a spot price low, and we lift our end of 2Q15 targets for WTI and Brent to $59 and $63 a barrel,” they said in a note.

“We revise up our 2016 Brent forecasts to $62 from $58, but remain bearish relative to the forward due to the big oil overhang.”