Investing.com - Oil prices dropped on Friday after markets dismissed Thursday's news reports that Saudi Arabia trimmed output in September to support the market.
In the New York Mercantile Exchange, West Texas Intermediate crude oil futures for delivery in December traded down 1.02% at $81.25 a barrel during U.S. trading, up from a session low of $80.37 a barrel and off a high of $82.00 a barrel.
The December contract settled up 1.95% at $82.09 a barrel on Thursday.
Support for the commodity was seen at $80.05 a barrel, Thursday's low, and resistance at $83.26 a barrel, Tuesday's high.
Oil prices shot up on Thursday on news reports that Saudi Arabia cut crude oil production by about 328,000 barrels in September to a total of 9.36 million barrels, though by Friday, clarifications that supplies were not cut though some barrels went into storage sent futures falling, especially on report overall output actually increased last month.
Meanwhile, reports that a doctor tested positive for the Ebola virus in New York City added to the selloff amid concerns that fears of a broader output could weigh on U.S. recovery and dampen demand for fuel and energy.
Soft U.S. housing data kept prices in negative territory as well.
The Census Bureau reported earlier that U.S. new home sales rose 0.2% in September to 467,000 units, missing expectations for an increase to 470,000 units.
The August figure was downwardly revised to a 15.3% climb to 466,000 units from a previously estimated 18.0% jump to 504,000 units.
Separately, on the ICE Futures Exchange in London, Brent oil futures for December delivery were down 0.37% at US$86.51 a barrel, while the spread between Brent and U.S. crude contracts stood at $5.26.