Oil prices on Friday declined amid fears that the US economy is headed for a recession that may result into decreased demand for oil despite US being the largest energy consumer.

U.S. crude was down 85 cents to $92.86 a barrel while London Brent crude traded 97 cents down at $91.25 a barrel.

The bombing of a docked oil tanker in Nigeria had resulted into a rise of oil prices but concerns about the U.S. economy offset the increase as traders forecasted a recession.

Nigeria is Africa's largest oil producer and a major oil supplier to the U.S.

On Thursday, U.S. Federal Reserve Chairman Ben Bernanke said the central bank was ready to cut interest rates to help offset a recession but oil prices did not increase despite the announcement which eased concerns about the U.S. economy.

Oil had traded above $90 for a month and hit a record high of $100.09 a barrel on January 3, but began to fall on Wednesday after the release of data that showed a rise in U.S. fuel stocks and a further decline in crude supplies.