The bearish sentiment appeared to outweigh the possibility that turmoil in Venezuela may lead to tighter global supply.
Oil prices fell slightly as concerns about U.S.-China trade talks and fresh data on surging U.S. fuel stocks sent a chill through markets.
Brent crude oil futures were at $60.86 a barrel at 1215 GMT, down 23 cents, or 0.38%. Brent has shed about 2.9% since the start of trade on Monday. It is on track to post its first week of losses in four weeks.
U.S. West Texas Intermediate (WTI) crude futures were trading at $53.06 per barrel, down 7 cents, or 0.13%.
Amid violent street protests, Venezuela’s opposition leader Juan Guaido declared himself interim president this week. Further, he won recognition from Washington and parts of Latin America.
Nicolas Maduro, the country’s leader since 2013, responded by breaking relations with the United States.
Global oil markets are still well supplied, however, thanks in part to a spike in U.S. output. The output surge has swollen U.S. fuel stocks. Crude inventories rose by 8 million barrels last week, according to official data released on Thursday.
START TRADINGForex – Commodities – Oil lower as U.S. supplies worries outweigh Venezuela turmoil
The euro rebounded on Friday as investors moved to price in signs of a slowdown in economic growth. More caution from the European Central Bank about removing stimulus any further weighed.
The euro weakened broadly on his comments and fell to a two-month low against the dollar of $1.1289. But on Thursday the single currency recovered, rising 0.3 percent to $1.135.
The Sterling held near a 11-week high on Friday. The British currency was poised for its biggest weekly rise in more than a year. Optimism that Britain will avoid a no-deal Brexit grows.
The pound was trading 0.25% higher at $1.3086 after scaling a high of $1.3140 for the first time since Nov. 8. The pound has gained more than 3.5% against the dollar and 4% against the euro this month.
For the week, it is up 1.7% against the dollar, the biggest weekly rise in a year. Against the euro, the pound was broadly flat at 86.71 pence.
The dollar index, a gauge of its value versus six other major currencies, fell 0.3% to 96.309.
The dollar is facing a tough year as growth at home and globally comes under pressure. The Federal Reserve moves closer to pausing its rate-hike cycle.
Interest rate futures are pricing in no rate change by the Fed through 2019. This was a turnaround from the four increases last year in a major boost to the dollar.
Sources: Reuters, Investing, CNN money
PLEASE NOTE The information above is not investment advice.