BRENT oil futures rose about 1 percent Friday while U.S. crude fell almost 1 percent, struggling to stay above US$40 a barrel, as worries about large stockpiles pressured its spot contract ahead of expiry.

    A firmer dollar added to the weight on oil as commodities denominated in the greenback became less affordable to users of other currencies such as the euro.

    Brent futures were up 40 cents at US$44.58 a barrel by 11:49 am EST (16:49 GMT).

    U.S. crude’s West Texas Intermediate (WTI) futures were down 22 cents at US$40.32 per barrel. WTI December that expires Friday fell to US$39.88 earlier in the session, the lowest since Aug. 27.

    For last week, Brent rose 2 percent while WTI fell 1 percent.

    “The continued heavy downside pressure on the nearby WTI contract going into today’s expiration is sending off some major bearish signals, suggestive of additional price weakening ahead,” said Jim Ritterbusch of Chicago-based oil consultancy Ritterbusch & Associates.

    Expiring December WTI reached a discount as wide as US$1.60 a barrel to nearby January, the largest discount in that spread, Reuters data showed. On a continuation-basis, the front-month’s discount, or contango, to the second month was the largest since late April.

    Brent’s rise was also supported by spread trades, with traders pricing in a larger premium for the global crude benchmark versus WTI. U.S. crude has weakened in four straight sessions against Brent.

    WTI’s contango blew out in recent weeks, coinciding with the spike in the number of barrels of U.S. crude being stored, as traders saw more benefit of buying into oil meant for later shipment due to weak spot prices.

    Market data suggest oil traders are preparing for a bigger downturn in prices by March 2016, from forecasts for an unusually warm winter dent demand and as Iran prepares for post-sanctions crude oil exports.

    (SD-Agencies)