Brent crude, the standard for worldwide oils, fell 15 cents to $48.23 a barrel in London.
Oil prices stabilized in Asian trading Friday after hitting a five-month low while regional stock benchmarks headed lower in holiday-thinned trading.
The pan-European FTSEurofirst 300 index .FTEU3 rose 0.69 percent and MSCI's gauge of stocks across the globe.MIWD00000PUS gained 0.36 percent after touching a record high.
"There's an emerging consensus among participating countries on the need to extend the production agreement reached previous year", the official told Reuters.
USA crude prices plunged more than 3% in a matter of minutes on Friday morning in Asia, taking the price of a barrel below $45 for the first time since a landmark OPEC deal in November to slash production.
Chinese stocks led regional losers, falling to a three-month low as concerns about tighter financial regulations weighed on banking shares while oil plays such as Petrochina and Sinopec tumbled on oil's retreat below the $45 per barrel mark.
Both benchmarks pared losses after Saudi Arabia's OPEC Governor Adeeb Al-Aama told Reuters that OPEC and non-OPEC nations were close to agreeing to extend a deal to curb production by 1.8 million barrels per day (bpd) for six months from January 1. Germany's DAX was down 0.1 percent at 12,633 and Britain's FTSE 100 was up nearly 0.1 percent at 7,249.
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Rising U.S. production and stubbornly high inventories remain key drivers of the oil price, but equally important is the level of compliance among members of the Organization of the Petroleum Exporting Countries to their pledge to cut output by 1.2 million barrels per day.
"The question is, is that enough to keep oil prices at a level that is good for business and for producers?" said Quincy Krosby, market strategist at Prudential Financial in Newark, New Jersey.
Crude oil prices have recovered following huge losses in the earlier session after industry group American Petroleum Institute (API) reported a fall in United States crude stocks.
Hong Kong's benchmark Hang Seng index lost 0.8 percent to 24,500.70 while the Shanghai Composite index in mainland China shed 0.6 percent to 3,107.25.
Nymex reformulated gasoline blendstock-the benchmark gasoline contract-fell 0.4% to $1.52 a gallon.
"At some point, the market should recognize OPEC isn't the most important player in the market any more", said Commerzbank's Eugen Weinberg, "That is non-OPEC, and, above all, USA shale". Markets in Japan and South Korea were closed for holidays. The euro edged up to $1.09876 from $1.0984.
CURRENCIES: The dollar recovered from an earlier drop, trading at 112.44 yen, about flat on the day.