Oil

Oil prices surged as much as 10% on Friday, one of the biggest daily rallies ever, as bearish traders who had taken out record short positions scrambled to close them, betting the market's long rout may finally be over.

Schlumberger Ltd Chief Executive Paal Kibsgaard said a "significant" recovery in oilfield activity was not expected until 2017, and he indicated that the company might struggle to meet analysts' estimates for its current-quarter profit.

Chesapeake Energy, battling weak prices for oil and natural gas, suspended dividends on its preferred shares in an effort conserve cash.

Chesapeake Energy Corp. on Friday said it has suspended dividends on its preferred shares as the natural-gas producer moves to conserve cash and pay down its debt.

Oil prices rebounded over $1 a barrel from 12-year lows on Thursday, their biggest daily gain this year, as rallying financial markets gave some bearish traders reason to take profits on record short positions.

U.S. crude prices were lower by 0.49% at $28.22 per barrel, erasing modest early gains as analysts said a surplus of crude would keep pressuring the market.