However, markets were still eyeing the longer-term risks of conflict, and prices were briefly supported on Friday by new US sanctions on Iran in retaliation for its missile attack on USA forces in Iraq this week.
According to CNBC updates at 7.30 pm (PST), a marked recovery was certainly seen, just days after the escalating US-Iran tensions had forced the crude to soar to its highest levels in four months.
For the week, Brent was on track for 4.9% loss and WTI set for a 6% decline, both benchmarks now below where levels was before the US drone strike killed Iranian general Qassem Soleimani on January 3.
Crude prices have dropped back below levels seen ahead of the US airstrike in Iraq last week that killed Iranian military commander Qassem Soleimani.
The Energy Information Administration on Wednesday said USA crude inventories rose by 1.2 million barrels in the previous week, defying forecasts for a decline, while supplies of gasoline and distillates showed bigger-than-expected increases.
During European trading hours Iranian media carried reports of military commanders speaking of further action aimed at expelling United States troops from the region.
As for prices, the Energy official said it was "unlikely" for global oil prices to reach beyond $70 per barrel.
JPMorgan analysts maintained their forecast for Brent to average US$64.50 a barrel this year.
"Top oil producers led by Saudi Arabia have agreed to reduce output by as much as 2.1 million barrels per day (bpd) through the first quarter of 2020".
Oil futures traded little changed in the immediate wake of the release of the U.S. December employment report, then moved lower. Brent futures for March settlement lost 13 cents to $65.24 a barrel on the ICE Futures Europe exchange.
Meanwhile, West Texas Intermediate crude was marginally down 0.72 percent to $59.13 per barrel, while Brent crude, the worldwide benchmark slipped 0.38 percent to $65.10 per barrel.
Crude oil for February delivery was down Rs 9, or 0.21 per cent, at Rs 4,234 per barrel with an open interest of 820 lots.