API had reported that USA crude inventories dropped by 10.2 million barrels last week. Meanwhile, trade tensions receded as China moved to lower duties on US vehicle imports.
"We believe oil prices will resume their path back up to $70 average next year, potentially higher in the second quarter for a brief spell of time".
North Sea Brent crude lost $2.41, or 4.0 percent, to a low of $57.20, a 14-month low, and last traded around $58.06, down $1.55.
A drop in US crude stocks also boosted oil, which has been riding higher on expectations that the OPEC-led planned output cuts would re-balance the market in 2019.
But many experts are not yet convinced that the supply cut will prevent a repeat of 2014, when supply overtook demand and caused a global glut: Stephen Innes, head of trading for Asia-Pacific at Oanda, said, "There remains a lot of uncertainty if the production cut is thick enough to make a significant dent in global supply".
"Global oil demand projections have been left unchanged for 2019, as the impact of lower prices is offset by the slight downward revision to gross domestic growth and significant downward revisions to demand in Turkey and Venezuela", the IEA said.
Suspected Strasbourg Shooter Reportedly Killed By Police
Police are now focusing their investigation on whether Chekatt had any help in carrying out his attack or while on the run. Chekatt was a Strasbourg-born man with a lengthy criminal record who also had been identified as a security risk.
U.S. crude inventories at Cushing, Oklahoma, the delivery point for USA crude futures, fell by almost 822,000 barrels in the week through Dec 11, traders said, citing data from market intelligence firm Genscape.
Meanwhile, the recent drop in crude prices has impacted a few marginal offshore projects that were set to move forward.
Oil prices rose on Thursday, buoyed by a drawdown in USA crude stockpiles and indications that China is taking concrete steps to put a trade war truce with Washington into action.
The Libyan cutback follows last week's decision by the Organization of the Petroleum Exporting Countries and some non-OPEC producers including Russian Federation to cut supply by 1.2 million barrels per day (bpd) for six months from January 1. The latest weekly survey by the U.S. Energy Information Administration (EIA) indicates a small inventory fall of 1.2 million barrels in the week ended December 7. But Goldman Sachs has a much darker forecast, expecting the U.S.to slow down to less than 2 percent by the end of next year, one of its senior strategists told CNBC on Monday.
"For further weakness in the market you need to see even stronger signs that demand growth is going to deteriorate and supply will continue to increase". Alberta's plan to boost crude prices through mandatory production cuts is working a little too well, and the price of heavy Canadian crude has more than doubled. WTI was at $51.55, up roughly half a percent.