Oil prices were under pressure from concerns over US demand and weak economic data that came out at the end of the week.
However, oil futures posted weekly gains, driven by unusually cold weather in the UK and a decline in the US dollar.
The American currency fell after it was reported yesterday that the unemployment rate in the US unexpectedly rose from 9.6% in October to 9.8% in November.
Non-farm payrolls added just 39,000, while analysts expected to see a gain of well over 100,000, while initial jobless claims in the US climbed 36,000 to 436,000 with the less volatile four week moving average falling to 431,000.
The prices got a boost from strong manufacturing data released earlier in the week.
Tuesday’s update on the Chicago purchasing managers’ index (PMI) climbed from 60.6 in October to 62.5 in November.
On Wednesday it was reported that the Markit/CIPS PMI in the UK rose from 55.6 to 58, hitting the highest level since 1994, while China’s PMI advanced from 54.7 in October to 55.2 in November.
This week’s inventories reports were mixed. The American Petroleum Institute (API) said that crude oil stockpiles in the US shed 1.14 million barrels.
A more closely watched report from the US Department of Energy, which was released on Thursday, showed a gain of 1.1 million barrels, signalling a decline in demand in the world’s largest energy consumer.
US light, sweet crude for January delivery closed at US$89.19/barrel, while February crude reached US$89.59/barrel on the New York Mercantile Exchange (NYMEX).
On the ICE Exchange, January Brent Crude last traded at US$91.68/barrel. Brent for February delivery stood at US$91.67/barrel.
Oil and gas stocks were headed in different directions this week.
BP (LON:BP) was unchanged at 436 pence, while fellow supermajor Shell (LON:RDSB) climbed from 1,963 pence to 2,000 pence.
BG Group (LON:BG) advanced from 1,207 pence to 1,234 pence, while Tullow Oil (LON:TLW) declined from 1,182 pence to 1,178 pence and Cairn Energy (LON:CNE) was unchanged at 397 pence.
Oil and gas engineering firms followed as Amec (LON:AMEC) was unchanged at 1,222 pence and Petrofac (LON:PFC) rose from 1,477 pence to 1,500 pence.