Oil futures fell in Asian trade on Friday as oversupply, a strengthening dollar and falls in regional stock markets all weighed on sentiment, Reuters reported.
But another fall in U.S. oil output in January helped to limit the losses, according to Reuters.
Brent crude for June delivery LCOc1 fell 46 cents to $39.87 a barrel as of 0549 GMT. The May contract, which expired on Thursday, settled up 34 cents at $39.60 a barrel.
Brent jumped 6% in the first quarter, its first quarterly increase since rising 15% in the second quarter of 2015, according to the report.
Front month U.S. crude futures CLc1 dropped 50 cents to $37.84 a barrel after settling up 2 cents in the previous session. The U.S. benchmark rose 4% over January-March, also its first quarterly gain since surging nearly 25% in the second quarter of last year.
Still, prices have recently pulled back on low trading volumes, concerns about oversupply ahead of an oil producers` meeting in Doha to agree a possible output freeze on April 17, and a firmer dollar, said Michael McCarthy, chief market strategist at Sydney`s CMC Markets, according to Reuters.
A stronger greenback makes dollar-denominated commodities including oil more expensive for holders of other currencies.
Oil markets would not get back into balance until the some of the overhanging supply is cleared, McCarthy added.
U.S. oil output fell by 56,000 barrels per day (bpd) to 9.179 million bpd in January, the fourth consecutive month oil production had fallen and the lowest level since October 2014, according to monthly data from the U.S. Energy Information Administration.
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