Brent turns lower, heads towards $57 as supply glut fears prevail

Brent crude futures retreated from early highs above $58 and fell towards $57 a barrel on Friday as an abundance of oil erased earlier support drawn from a larger-than-expected fall in U.S. crude stocks.


U.S. crude inventories fell by 1.8 million barrels in the last week as refineries raised production, compared with analysts' expectations of a decrease of 67,000 barrels.

But a supply glut in delivery hub Cushing, Oklahoma, persisted, rising by 1.995 million barrels, amid higher product stocks, EIA data showed.

Front-month U.S. crude for February delivery was up 38 cents a barrel from Wednesday at $53.65, after reaching an intraday high of $55.11.

Markets were shut on Thursday for the New Year holiday. Oil prices have fallen by half from last year's peak to a 5-1/2-year low, under pressure from a global glut of crude, exacerbated by the refusal of the world's top oil exporter, Saudi Arabia, to trim supply.