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Oil prices dipped early on Friday on fresh signs the Middle East will continue to prioritise market share over prices, while the United States kept interest rates at historic lows on worries over the health of the global economy.
US West Texas Intermediate (WTI) crude futures were trading at $46.70 per barrel at 0049 GMT, down 20 cents from their last settlement. Brent prices were little changed at $49.14 per barrel.
Kuwait, a key producer of the Organization of the Petroleum Exporting Countries (OPEC), said on Thursday that the oil market would balance itself but that this would take time, indicating support for the producer group's policy of defending market share despite falling prices.
This view was confirmed by sources at OPEC who said they expected oil prices to rise by no more than $5 a barrel a year to reach $80 by 2020, with a slowing in rival non-OPEC production growth not enough to absorb the current oil glut.
The lower prices came despite the US Fed keeping interest rates at historic lows.
Analysts have suggested a weaker dollar would provide some support to crude prices, as it makes dollar-traded crude cheaper for countries using other currencies.
"With the Fed on hold and a weaker dollar, support should return to commodity markets," ANZ bank said.
Some traders disagreed. "It's the Fed's thinking behind holding rates that spooked us more than the impact of a weaker dollar. They kept rates low because they worry about the health of the global economy. That makes me worry about global oil demand," said one crude trader.
