Oil futures extended nominal overnight price declines into a more pronounced 2% drop on Friday (27 January) as the market's attention turned back to US production, which is expected to bounce in the wake of the Donald Trump administration's pro-energy stance.

At 4:51pm GMT, the Brent front month futures contract was 2.12% or $1.19 lower at $55.05 per barrel, while the West Texas Intermediate (WTI) was down 2.01% or $1.09 at $53.06 per barrel, ahead of the latest rig count data.

Analyst at Vienna-based JBC Energy said rising expectations of high compliance with oil production cuts was the likely source of overnight momentum following mid-week pressure from US inventory gains.

"However, there is renewed uncertainty over the potential impact of a 20% tax on Mexican imports by the Trump administration."

"Given that speculative net long positions in Brent and WTI are already at a record-high level, the correction potential is [therefore] growing all the time," Commerzbank commodities analysts wrote to their clients.

Away from the oil market, precious metals were on mixed turf. At 4:57pm GMT, the Comex gold futures contract for April delivery was down 0.19% or $2.30 at $1,187.50 an ounce, while spot gold was 0.10% or $1.17 lower at $1,187.33 an ounce, despite a weaker dollar.

FXTM research analyst Lukman Otunuga said gold found itself exposed to painful losses this week after renewed investor risk appetite from the Trump effect and dollar's resurgence encouraged sellers to attack the metal incessantly.

"The yellow metal is currently trading around a fresh two-week lows at $1,181 and is at risk of trading lower if the fourth quarter GDP for the United States exceeds expectations. The downside momentum is strong and a breakdown below $1,180 could spark a further selloff towards $1,160."

Finally, Comex silver was up 1.19% or 20¢ to $17.05 an ounce, while spot platinum was down 0.16% or $1.55 to $976.60 an ounce.