Oil prices fell on Dec. 28, shedding early gains on profit-taking ahead of the New Year holiday as global crude benchmarks moved back towards their lowest levels in more than a year.
Brent crude oil fell 56 cents to a low of $51.60/bbl before recovering some ground to trade around $52.05 by 1300 GMT, having earlier risen more than 3%. The futures contract dropped 4.2% on Dec. 27.
U.S. light crude was last up 30 cents at $44.91, after rising 3.6% in early trade.
Oil prices fell to their lowest in almost 18 months this week and are down more than 20% for the year, depressed by rising U.S. supply and concern over global economic growth.
Stock markets in Europe and Asia rose on Dec. 28 after Wall Street ended a volatile session with big gains, but fears of further price swings and worries about U.S. politics kept investors cautious.
Traders appeared to be squaring their books ahead of expected light volumes on Monday and a market closure on Tuesday for the New Year's Day holiday.
"Looks like some people in the U.S. and U.K. got a nice opportunity to bail out of longs," Sukrit Vijayakar, principal and trader at Trifecta Consultants in Mumbai, told Reuters Global Oil Forum.
Stephen Innes, head of trading for Asia-Pacific at futures brokerage Oanda in Singapore, said crude prices had been pressured by slowing economic growth "coupled with the expectation of strong U.S. production in the new year.”
U.S. crude inventories rose 6.9 MMbbl to 448.2 MMbbl in the week to Dec. 21, according to the American Petroleum Institute. The U.S. Energy Information Agency (EIA) will publish its data at 1600 GMT.
"If the EIA's data shows a rise in U.S. crude inventories, that would cap price gains," Ahn said.
The United States has emerged as the world's biggest crude producer this year, pumping 11.6 million barrels per day (MMbbl/d), more than both Saudi Arabia and Russia.
Russian Energy Minister Alexander Novak said on Thursday that Russia would cut its crude output by between 3 million and 5 million tonnes in the first half of 2019 as part of a deal between producers.
Earlier this month, the Organization of the Petroleum Exporting Countries and its allies including Russia, agreed to cut output by 1.2 MMbbl/d, or more than 1% of global consumption, starting in January.
Asia's top refiner China Petroleum & Chemical Corp. (Sinopec) boosted spending on exploration and production by 41% last year as crude oil reserves tumbled at its biggest oilfield.
Tanzania says it plans to conclude talks in September with a group of foreign oil and gas companies led by Norway's Equinor on developing a liquefied natural gas (LNG) project in the East African country.
Comments from executive contrast with company’s previous statements.