US crude oil falls more than 1% on supply surplus

However, market activity was subdued due to a US holiday

US crude oil futures fell more than 1% in early Asian trading on Friday, under pressure from concerns of a supply glut, although market activity was subdued due to a US holiday.

West Texas Intermediate (WTI) futures, the US crude benchmark , dropped 45 cents or 1.05% to $42.59 per barrel at 2347 GMT.

Brent crude settled down 71 cents at $45.46 a barrel in the previous session, having earlier dropped more than $1 to a session low of $45.00 a barrel.

"US stocks data did little to excite the market," ANZ said in a note on Friday, referring to data from the Energy Information Administration on Wednesday which showed US crude inventories > rose 1 million barrels last week, slightly below analysts' expectations for a rise of 1.2 million barrels.

 

The market will now focus on a meeting of ministers from Organization of the Petroleum Exporting Countries, which is set for Vienna on December 4 to coordinate the group's production.

OPEC is determined to keep pumping oil vigorously despite the resulting financial strain even on the policy's chief architect, Saudi Arabia, alarming weaker members who fear prices may slump further towards $20.

Russian Energy Minister Alexander Novak said on Thursday that Russia and Saudi Arabia will set up a special joint working group on oil and gas cooperation to promote energy dialogue between the world's top oil producers.

The euro slipped towards seven-month lows, bond yields fell and European shares rallied on Thursday on growing talk of aggressive stimulus from the European Central Bank next week.