Brent crude oil futures traded near three-month lows on Friday as the pressure of a persistent supply glut quashed any optimism about a price recovery.
An early rally in Brent crude proved difficult to sustain, as focus returned to an overhang that has cut prices by more than 10% this month, Reuters reported.
"The drivers that pushed prices lower are still there," said Hamza Khan, head of commodity strategy at ING, pointing to the strong dollar and increasingly efficient US shale operations in addition to the overhang of physical oil.
"Any rally today is going to have a difficult time finding traction," he said. The front-month Brent crude contract was 9 cents higher at $44.27 a barrel. The contract finished 4 cents higher on Thursday.
US WTI for December delivery was trading 54 cents lower at $40 per barrel. It ended down 21 cents on Thursday, after dipping to $39.89 during the previous session, its lowest since Aug. 27.
The December contract expires Friday afternoon. The January contract for WTI was also 16 cents lower at $41.56 a barrel. The strength of the US dollar, which was trading near seven-month highs, has a negative impact on crude prices, as it makes oil and other commodities more expensive for holders of other currencies.
