Oil retreated from a 12-week high as optimism spurred by Saudi Arabia's surprise output cut was overshadowed by demand concerns.

West Texas Intermediate for January delivery fell 28 cents, or 0.5%, to $58.92 a barrel on the New York Mercantile Exchange as of 9:47 a.m. in Singapore. The contract closed at $59.20 on Friday, the highest since Sept. 17. It climbed 7.3% last week, the most since mid-June.

Brent for February settlement dropped 23 cents, or 0.4%, to $64.16 a barrel on the London-based ICE Futures Europe Exchange. The contract rose 1.6% on Friday, ending the week 3.1% higher. The global benchmark crude traded at a $5.34 premium to WTI for the same month.

Source : Bloomberg