(July 1 Reuters) Oil prices eased on Friday as focus returned to oversupply as production from Nigeria and Canada revived and OPEC production reaching a record high in June.
Despite Friday's losses, oil prices were on track for the first weekly gain in three weeks after a bullish run this week on strong buying following Britain's vote in favor of leaving the European Union.
Global benchmark Brent crude futures were down 30 cents at $49.41 a barrel at 0940 GMT
U.S. West Texas Intermediate (WTI) crude was trading at $48.08, down 25 cents day on day.
"Oil has settled down after the initial short covering squeeze earlier in the week," said Ole Hansen, commodity strategist as Saxo Bank in Copenhagen.
"A rising contagion indicates that the market is getting ready to absorb returning supply from Nigeria and Canada."
Militant attacks in Nigeria had brought production to the lowest in 30 years but no new attacks have been carried out since June 16, allowing production to slowly ramp up.
Click on the link below to see the full story from Reuters: (by Karolin Schaps)