Oil in worst weekly losing streak in 28 years

Reuters with staff
Ripple effects of falling oil

Oil futures bounced off a four-year low Friday but prices fell for a seventh week in the longest losing streak since 1986.

U.S. crude futures settled up $1.61 at $75.82, after hitting a four-year low earlier in the day. Oil has been selling off on a supply glut, and amid speculation OPEC producers will not cut production when they meet Nov. 27. West Texas Intermediate lost 2.2 percent for the week.

The International Energy Agency, which typically refrains from predicting oil prices, said in its monthly report that prices could fall further in 2015 and pressure was building on OPEC to cut supply.

"Barring any new supply disruption, downward price pressures could build further in the first half of 2015," the IEA, adviser to the United States and other industrialized countries, said.

Read MoreOil set to fall further in 'new chapter' for markets: IEA

hit an intra-day low of $76.76 earlier in the session, the lowest since September 2010, before climbing $1.90 amid short covering to $79.39 in afternoon trading. Brent was down more than 5 percent for the week.

Read MoreOil collapses as OPEC stands back and US booms

After hitting 4-year lows, can oil prices recover?

Global benchmark Brent was down from $115 in June and has dropped for eight weeks in a row, its longest weekly losing streak since records began in 1988, based on Reuters data.

Oil supply and demand balances of the IEA and other forecasters point to a rising supply surplus in 2015 because of increasing production from the United States and other countries outside OPEC.

OPEC meets on Nov. 27 to discuss its response to falling prices. While some members such as Venezuela want OPEC to reduce output, top exporter Saudi Arabia has yet to say if it supports a cut.

Read MoreLow oil prices to bite into 2015 US shale growth: IEA

While top OPEC producer Saudi Arabia has yet to say if it backs a supply cut, more smaller producers are supporting the need for action. Algeria and Venezuela will join forces to defend prices, Venezuela's Foreign Minister was quoted on Thursday as saying.

"I think Algeria and Venezuela are saying that they are willing to commit if the rest of OPEC is willing," Bjarne Schieldrop, chief commodity analyst at SEB in Oslo, told the Reuters Global Oil Forum.

"Hopefully we will have enough pain ahead of the OPEC meeting in order for OPEC to become OPEC again."

Supply disruptions still have the potential to support prices. In Libya the Hariga oil port reopened after a protest ended but the El Sharara oilfield remains shut.

Read MoreOil prices collapse as OPEC stands back, while US booms

Adding to oil glut worries, crude stocks at the key Cushing, Oklahoma, delivery hub climbed by a larger-than-expected 1.7 million barrels last week, the Department of Energy's Energy Information Administration said on Thursday.

But U.S. crude stockpiles unexpectedly fell 1.7 million barrels in the week to Nov. 7, against analysts' expectations of a 750,000 barrel build in inventories, the EIA reported Thursday.

--CNBC contributed to this report.