Updated from 2:19 p.m. EST
Crude oil prices closed lower Monday, failing to build on Friday's surprising rally.
The January futures contract lost 25 cents to $48.64 in Nymex floor trading, after gaining about 1% early in the session.
Traders bid up prices 5% Friday on growing concerns about heating oil supplies ahead of the winter season. The rally followed a three-week correction, which took the benchmark crude 17% below its closing record high of $55.17 in late October. Prices went through a similar downtown during most of July, only to bounce back and push even higher than before in August.
Until recently, prices had hit record highs on a regular basis, as traders worried about a disruption to supply amid unusually strong global demand.
Hits to production in Iraq, Nigeria, Norway and the U.S. -- where Hurricane Ivan disrupted facilities in the energy-rich Gulf of Mexico in September -- have all given traders reason to bid up prices.
In addition, speculation about a reduction in exports from Russia, where the major oil company Yukos is embroiled in a massive tax dispute with the government, has supported prices. Moscow Friday said it would auction off the company's Siberian production unit, which alone produces about 1 million barrels a day.