Brent crude price rose by 23 cents to $107.26 a barrel, but posted a huge weekly loss since October because of economic worries in Europe and a looming fiscal crisis in the United States.

Brent slipped to 3.5% for the week, which represents the biggest loss since the week ending 19 October, while US crude gained by 31 cents to $86.57 a barrel, reported Reuters.

Oil prices are expected to see a sharp fall with the European Central Bank (ECB) suggesting a dismal picture for the region in 2013 and no immediate solution sighted so far for the US ‘fiscal cliff’, which remains a key concern for the investor community.

On Thursday, the White House and Republicans in Congress gave some indication that low-level private talks have resumed to end the deadlock, although no details of the discussion were revealed.

China has shown some recovery after seven quarters of slowdown, pointing to some positive outlook for oil demand.

Oil markets are expected to see some relief as debt-ridden Greece signed a deal with its international lenders for a bail out.

Ongoing tensions regarding the supply of oil from the Middle East did not appear to be near an end, with the political crisis worsening in Egypt, civil conflict taking bigger shape in Syria and Israel still showing aggression towards Palestine.

Image: The European Central Bank suggested a gloomy picture for the region in 2013. Photo courtesy of Yann.