In morning trade, New York's main contract, light sweet crude for January delivery, was 32 cents higher at 92.57 dollars a barrel.

The contract had fallen 2.14 dollars to close at 92.25 dollars a barrel in New York on Thursday.

Brent North Sea crude for January was 41 cents higher at 92.53 dollars after falling 1.90 dollars in London trade on Thursday.

"I think you've got a very jittery market at the moment," said David Johnson, of Macquarie Securities in Hong Kong.

Prices had jumped more than four dollars Wednesday on the view that a coordinated plan by five major central banks to ease a global credit squeeze would support the world economy and, as a result, demand for oil.

The plan, led by the American Federal Reserve, included the central banks of the eurozone, Britain, Switzerland and Canada.

However, oil prices subsequently retreated in volatile trade as dealers, on further reflection, feared the plan would not work.