New york: Oil prices fell slightly in volatile trading, with US crude hitting its lowest level since May, as a decline in US stocks fueled negative sentiment regarding a supply glut.

According to National Iraqi News Agency, West Texas Intermediate crude closed below $58 a barrel, its lowest level since May, while the global benchmark Brent crude fell to its lowest point in nearly two months. Diesel futures, which fell by about 1.4%, were the biggest drag on the oil market on Friday, while the sell-off in US stocks exacerbated the decline.

Thin trading volumes ahead of the Christmas and New Year holidays, coupled with traders’ risk aversion after a difficult year in terms of earnings, also contributed to the price volatility. Growing expectations that supply will exceed demand next year have pushed crude prices toward the lower end of the range they have been trading in since mid-October, and some traders have begun positioning themselves for further declines. Short bets on Brent crude reached their highest level in seven weeks, according to data released on Friday.

Geopolitical tensions are also providing some support for oil prices, as US President Donald Trump announced new sanctions on three of Venezuelan President Nicolas Maduro’s nephews, as well as on six oil tankers, after the US seized a supertanker off the coast of the Latin American country on Wednesday. Uncertainty surrounding the prospects for a peace agreement to end Russia’s war in Ukraine-which could lower prices by lifting sanctions on Russian crude-is also contributing to the support for oil prices.