World oil prices extended losses in Asian trade Friday on demand concerns amid speculations that OPEC might raise output to cool prices.
Light sweet crude for March delivery was seen trading at $85.18 a barrel at 12.00 noon at Singapore time while Brent crude for March was at $97.37 a barrel.
Analysts said the black gold may headed for its biggest weekly decline in New York since August amid speculation that prices are too high and may derail the economic recovery in the U.S., the biggest crude-consuming nation.
They also attributed raising jobless claims in the US that might hit oil consumption for the likely fall of the black gold.
The U.S. Labor Department said on Thursday that the number of people applying for jobless benefits spiked by 51,000 to 454,000 last week, much larger than economists' previous estimate of a rise to 408,000.
Futures fell for a second day on signs that the Organization of Petroleum Exporting Countries is starting to increase output to cap prices. Brent crude rose, extending its record premium to New York oil.
Some analysts said oil may fall during the day as investors braced for further interest hikes in China, the world's largest energy consumer, analysts said.
