Oil prices fell on Wednesday after hitting a near two-and-a-half year high in the previous session as analysts said the rally was gradually running out of steam despite supply outages in Libya and the North Sea.
Oil prices jumped as much as 6% on Wednesday after Opec sources said the group has reached a deal to limit crude output at its policy meeting in November, a source for the producer group said.
Oil prices edged lower in volatile trading after Kuwait said it would agree to an output freeze only if all major producers took part and Goldman Sachs analysts poured cold water on prospects for a sustained rally.
Oil surged more than five percent in Asia Friday, a day after tanking towards 13-year lows and following a report suggesting the OPEC producers' club was open to working towards cutting output to stabilise volatile crude markets.
Oil prices slid as record US crude inventories at the Cushing delivery point and worries about a global economic slowdown weighed on markets, and Goldman Sachs said prices would remain low and volatile.
US crude oil futures fell in Asian trade on Friday, heading lower after posting the first significant gains for 2016 in the previous session, as the prospect of additional Iranian supply looms over the market.