Oil prices retreat from four-week highs

Oil prices on Friday briefly hit highs not seen in four weeks following a positive economic report, but continuing concerns about a global supply glut erased those gains by the end of trading.

The price of West Texas Intermediate crude oil, the U.S. benchmark, briefly topped $34 and the price of Brent crude, the global benchmark, passed $36 for a short while. But the respective commodities eventually settled down 0.9% to $32.78 and 0.5% to $35.10.

Traders were temporarily encouraged at a new report that U.S. gross domestic product rose by a seasonally adjusted rate of 1% in the fourth quarter of 2015, more than the previous estimate of 0.7% and above expectations for a downward revision to 0.4%.

Market medals: S&P 500 hurdles 1947 level

The report from the U.S. Commerce Department, allayed some fears of recession. A better economy typically means greater consumption of oil, which can increase prices.

But this time may be different. Oil analysts say that the global glut of oil is more than enough to absorb increased demand, likely leading to a prolonged period of low prices.

"Trust me, the next few months will see ugly accumulation of crude oil inventory in the U.S., and prices will remain under water for many U.S. shale producers," Oil Price Information Service analyst Tom Kloza said in an email.

U.S. oil production fell for a fifth consecutive week -- now down 130,000 barrels per day from its mid-January peak. But crude oil stored in commercial tanks reached 507.6 million barrels, an all-time high according to Capital Economics.

And Saudi oil minister Ali Al-Naimi told a conference in Houston earlier this week that the Organization of the Petroleum Exporting Countries (OPEC) will not make any production cuts. He suggested that Saudi Arabia is prepared to allow oil to fall to $20 per barrel and that high-cost operators must cease pumping.

Follow USA TODAY reporter Nathan Bomey on Twitter @NathanBomey.