The news gave Crude a second leg, just hours after reports said Saudi Arabia would agree to a ceasefire in Yemen, where it has been fighting anti-government rebels for the past four years.
US WTI crude futures fell as low as $ 54.84 a barrel before recovering to $ 55.44 by 8:57 AM ET.
Prices of crude oil prolonged their losses on Friday after Iranian President Hassan Rouhani was quoted by Reuters as saying the US President Donald Trump had offered to lift all sanctions on Iran in exchange for talks. It was not immediately clear what conditions would apply to the start of the talks, and what exactly such talks would entail. US Special Representative for Iran Brian Hook was immediately quoted as saying Iran’s claims were “groundless”.