Oil prices declined as Goldman Sachs cut its oil price forecasts. The bank expects the WTI crude to be $45 a barrel in 2016, down from the previous estimate of $57, while Brent is expected to be $49.50, down from the previous estimate of $62.

The International Energy Agency (IEA) released its monthly report on Friday. The agency said that low oil process could lead to the reduction of non-OPEC oil output next year.

"Oil's price collapse is closing down high-cost production from Eagle Ford in Texas to Russia and the North Sea, which may result in the loss next year of half a million barrels a day - the biggest decline in 24 years," the IEA said.

Global oil demand growth is expected to rise to 1.7 million barrels per day (bpd) in 2015, and to be 1.4 million in 2016, up 0.2 million from the previous estimate.

The IEA forecasts OPEC oil output to be around 31.3 million bpd in 2016, up 0.5 million bpd from the previous estimate.

The agency noted that Chinese demand for oil products will remain strong.

"We expect China, the world's second-largest oil consumer, to keep up its crude purchases despite the recent stock market collapse, currency devaluation and steady stream of negative macroeconomic news. Beijing could also buy extra crude to fill up its strategic reserves," the agency said.

WTI crude oil for October delivery fell to $44.72 a barrel on the New York Mercantile Exchange.

Brent crude oil for October declined to $47.94 a barrel on ICE Futures Europe.