The oil price has risen by more than 45 per cent since mid-February ahead of a meeting next month between the world's major producers to discuss an output freeze to support prices. But there is growing scepticism about the outcome of meeting.

"The amount of verbal intervention, which has obviously helped the market greatly over the past two months, combined with a production slowdown in the US, has probably taken (oil) as far as it can, now the market really wants to see some action," Saxo Bank senior manager Ole Hansen. "We're seeing more and more commentators raise the flag and saying 'have we seen too much, too soon?' in terms of the rally across the sector."

Brent crude futures fell 58 cents to $39.69 a barrel by 0846 GMT, having lost some six per cent in the last six trading days, while Us crude fell 47 cents to $38.92.