Brent crude oil holds above $60 a barrel in early trade
Brent crude oil holds above $60 a barrel in early trade.Reuters

Brent crude oil prices held above $60 in early trade on 13 February, as news of deeper industry spending cuts and a weak US dollar stimulated buying.

Brent April contract was trading 1.42% higher to $60.12 a barrel at 0732 GMT.

Brent prices have risen over 3% so far this week.

US crude futures were trading 1.37% higher to $51.91 a barrel.

Wang Tao, a market analyst at Reuters, said Brent will test resistance at $63.40.

Daniel Ang, of Phillip Futures in Singapore, said in a note to clients: "Brent April 15 seem to be trending very near to the resistance of $60.40 suggesting that it would more likely trend downwards as prices consolidate after yesterday's rise."

The Brent March contract, which expired overnight, rose more than 4% to $57.05 on 12 February.

In the US, shale oil producer Apache Corp said on Thursday it will cut capital expenditures and rig count this year, as the oil rout had prompted it to slow drilling, leaving output growth mostly flat.

Elsewhere, French energy giant Total, on Thursday, became the latest to announce investment and job cuts following a near-halving of oil prices since June 2014.

Meanwhile, Shell warned that supply might not be able to keep up with growing demand as companies slash budgets.

Capital Economics said in a 12 February note: "The main story since the beginning of the year has been the recovery in the price of oil, which is now 20% above its recent lows, reflecting the first signs of supply cuts in response to the previous drop..."