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Crude oil prices edged up on Friday after falling over 2 per cent the previous session, with analysts saying oversupply and a strong dollar would continue to weigh on fuel markets.
U.S. crude futures were trading at $45.37 a barrel at 0129 GMT, up 17 cents from their last settlement, while Brent crude rose 14 cents to $48.12 a barrel. The slight increases came after drops the previous day on the back of climbing U.S. crude inventories.
Analysts said that oversupply would pressure oil markets.
"We have seen few signs recently indicating a change of tack in the oil markets," said French investment bank Natixis.
"Oil prices will remain under pressure as long as the surplus remains in the market," the bank added, referring to global production being 1-2 million barrels per day above demand.
The strong U.S. dollar is also seen as a drag on commodity markets as it makes imports for countries with other currencies more expensive.
The greenback has gained almost 5 per cent against a basket of other leading currencies since early October as markets expect the U.S. Federal Reserve to be the first major central bank to raise interest rates since the global financial crisis of 2008/2009.
"Rising speculation that the Fed will raise rates will put further downward pressure on commodity prices," ANZ Bank said on Friday.
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