Oil reversed course and rose as much as 2 percent on Thursday, after industry sources said Russian Federation had accepted the need to cut production, together with OPEC ahead of its meeting next week.
Fundamentally, investors remain concerned about the continuous flow of USA supply along with new worries that Saudi Arabia is insisting that it will not cut production on its own to stabilize supply and prices.
OPEC plus Russian Federation and other allies are due to meet on December 6-7. where they will discuss a supply curb of 1 million to 1.4 million barrels per day (bpd) and possibly more, OPEC delegates have told Reuters.
Yet Russia is becoming increasingly convinced it needs to reduce oil output in tandem with OPEC even though it is still bargaining with Saudi Arabia over the timing and volume of any reduction.
Cost of January futures for Brent crude on London's ICE Futures exchange is $57,57 per barrel, or $1,19 (2.03 per cent) below level of closing of the previous session, reports the online edition of the Chronicle.info with reference to the Correspondent.
On Wednesday, Putin said Russian Federation was in touch with OPEC but Moscow would be satisfied with an oil price of $60 a barrel.
Petrol prices have slid globally amidst the upheaval in the oil market following the sanctions on Iran and increased output from OPEC as well as America. USA crude futures (CLc1) rose $1.16, or 2.3 percent, to $51.45 a barrel, having hit a high of $52.20.
USA energy firms this week added oil rigs for a third week in four and increased the rig count for the fifth month in a row, General Electric Co's Baker Hughes energy services firm said in its closely followed report on Friday.
The API said that USA crude stocks rose by 3.5 million barrels, more than analysts forecast.
West Texas Intermediate for January delivery fell 91 cents to $50.54 a barrel on the New York Mercantile Exchange at 10:47 a.m., taking WTI's decline this month to 22 percent.
Members will meet in Vienna on Thursday as latest figures from the International Energy Agency suggest an oversupply of 1.7million barrels per day.
"Near-term oversupply has gutted Brent prices", USA investment bank Jefferies said in a note on Friday, adding that there was "an increasing urgency to move crude into storage".
"We have seen huge increases in supply and the demand picture is in question".
But oil trade, vital for Russian economy, is conducted in U.S. dollars, a "monopoly" Russia's President Vladimir Putin wants to end. "However, we might see some movement on global trade issues at the G20 meeting which starts on Friday", said Michael McCarthy, chief strategist at CMC Markets and Stockbroking.