Oil prices edged down early on Friday as oversupply concerns and demand worries stemming from a stronger dollar outweighed a steep draw in U.S. fuel stocks.
The dollar was headed for its best week in more than a month on Friday, buoyed by expectations of fewer Federal Reserve rate cuts and the view that Donald Trump's policies could further stoke inflation when he assumes office in January.
Most Asian stocks fell on Thursday, extending recent losses as signs of sticky U.S. inflation fueled uncertainty over future interest rate cuts, while investors held out for more stimulus measures in China.
Oil prices drifted lower in Asian trade on Thursday following middling industry data on U.S. inventories, while markets sought more cues on demand from China and the International Energy Agency.
The U.S. dollar revisited a one-year high against major peers on Thursday, as a fourth straight winning session from momentum sparked by Donald Trump's election victory eclipsed a rise in bets for Federal Reserve easing.
Most Asian stocks fell on Wednesday, tracking losses in Wall Street as a post-election rally now appeared to be cooling, while anticipation of key U.S. inflation data also spurred risk aversion.