Traders said that market prices rose as KPC appeared to be cutting supplies more than initially expected
Beyond the bearish impact from the US interest rate hike, oil prices were also dragged down by rising output from OPEC
International Brent crude futures were down 62 cents, or 1.1 percent, at $55.10
There was particular surprise as Saudi Arabia, the world's top producer, said it may cut its output even more than it had first suggested at an Organization of the Petroleum Exporting Countries meeting just over a week ago.
Non-Opec countries including Russia pledged to pump less next year
Aban Offshore, HOEL, Selan Exploration, Deep Industries, Cairn India and Jindal Drilling were up 2%-4% on the BSE.
Benchmark Brent oil has rallied to USD 54.56 a barrel, the biggest weekly gain since 2009
It will also hurt refiners, retail marketers and oil producers
Goldman Sachs Group said the market is pricing in a 30% chance of a deal
Brent crude futures fell as far as 2 percent before clawing back to trade up 29 cents at $47.44 per barrel at 1008 GMT
Oil producers in the Organisation of the Petroleum Exporting Countries are due to meet on Nov 30 to agree to limit output
A surging dollar following the initial shock of Donald Trump's US presidential election win also put pressure on oil prices
Trump has promised freedom from Opec and some of his energy policies include opening federal lands to drilling and freeing up offshore areas to development
In Asia, physical oil analysts were digesting mixed data out of China on Tuesday, which showed a fall in crude imports and a rise in exports of refined products
The falls in oil came as prices for gold, a traditional safehaven for investors in times of uncertainty jumped
Secretary-General of the Opec assures on the group's commitment to a deal made in Algiers to cut output
Last week's losses were the steepest since January
US crude falls 68 cents, or 1.5 per cent, to settle at $44.66 per barrel
Concerns over supply disruptions in Nigeria also supported prices
Ahead of likely US inventory data release