Crude prices steadied on Friday, having shed around US$3 a barrel yesterday, the first trading day of 2014.
For Brent crude, the international benchmark, it was the biggest fall for about six months and leaves the price near the bottom of the recent trading range.
The fall was precipitated by the renewed expectation that Libya would shortly bring the El Sharara oilfield back online and ramp up exports.
In London trading, on Friday, Brent crude futures had edged almost 20 cents better changing hands at US$108 per barrel, whilst West Texas Intermediary futures were trading at US$95.40.
Later this afternoon, attentions will turn the belated release – due to the new year bank holiday – of oil inventory statistics from the United States.
Coming so late in the week the regular snap-shot on American could potentially set the tone for next week’s trading, especially if it triggers any further selling.
Analysts are expecting the report to reveal a 2.8mln barrel decrease in stockpiles last week.