LONDON: Oil prices were steady Monday after last week’s rally, as traders reacted to renewed oversupply concerns spurred by an increase in US rigs output, analysts said.

Last week’s gains lifted US benchmark West Texas Intermediate (WTI) above $40 for the first time since December, buoyed by a sharp drop in the dollar and revived optimism that producers would strike a deal to freeze output.

Brent crude futures for May delivery, the front-month, were up 10 cents at $41.30 a barrel by 12:05 p.m. EDT (1605 GMT). Brent has risen 53 percent from 12-year lows of $27.10 hit on Jan. 20.

US crude’s futures for April, which expires as the front-month at Monday’s settlement, gained 44 cents to $39.88. US crude’s more-active May contract, which would be front-month from Tuesday, rose 27 cents to $41.41.

Analysts said US data had taken the steam out of recent sharp gains. “The weekly rig count for the US reflected an increase for the first time after 12 weeks of cuts,” said EY analyst Sanjeev Gupta.

The Baker Hughes weekly count of oil rigs operating in the US rose by one after falling for more than two months running, while gas rigs dropped by five.

IG Markets market strategist Bernard Aw saw the price drop as a “knee-jerk reaction,” adding that it was still unclear if US production will increase.

Qatar’s Energy Minister Mohammed Al-Sada last week said that exporters from within and outside the OPEC would meet April 17 in Doha, stoking hopes of an agreement to ease a global supply glut.

The initiative is backed by 15 countries accounting for about 73 percent of worldwide output.