Investing.com -- Crude oil futures moved slightly lower on Friday, as energy traders locked in profits from earlier this week when prices rose sharply to reach its highest level for the year.
On the New York Mercantile Exchange, WTI crude futures for May delivery fell 1.00 or 1.76% to 55.71 a barrel to snap a six-day winning streak. On Thursday, Texas Light Sweet futures peaked at $57.37 continuing an extended rally that began last week when crude plunged near $50 a barrel following record inventory buildup. WTI crude still moved higher for the fifth consecutive week.
On the Intercontinental Exchange (ICE), brent crude futures for June delivery hovered near Thursday's high of $64.95, when prices reached its highest level of the year, before falling slightly during a late sell-off. Brent crude dropped 0.53 or 0.83% in U.S. afternoon trading to settle at 63.45.
The spread between the international and U.S. domestic benchmarks of crude rose to $7.74, up from $7.20 on Thursday.
WTI crude prices fell roughly a dollar on Friday afternoon after oil services firm Baker Hughes (NYSE:BHI) said the number of oil rigs in the U.S. last week fell by 26 to 734, its lowest level since November, 2010. The rig total has now decreased for 20 consecutive weeks, since exceeding a level of 1,600 last October. Meanwhile, Oil and gas rigs combined declined 34 to 954, the lowest amount since July, 2009.
While the rig count has declined steadily since last fall, the pace of decline appears to be slowing. Last week for instance, Baker Hughes said its weekly oil rig count decreased by 42 – drastically lower in comparison with a two-week period in mid-February when the rig total was slashed by more than 80 for two consecutive weeks.
Energy traders remain focused on U.S. production levels, which currently stand at approximately 9.3 million barrels per day. On Thursday, Opec said it expects U.S. crude production to exceed 13 million bpd later this quarter before leveling off for the remainder of the year.
In the Middle East, tribal fighters loyal to Yemen president Abdurabuh Mansur Hadi said they regained control of the Masila oil fields in the southern province of Hadramaut. One day earlier, the oil terminal was reportedly captured by Al Qaeda.
While Yemen is considered a minor exporter of crude, it is strategically located on one of the world's largest chokepoints of oil. The country has been ravaged by frequent Saudi-airstrikes against Shiite-led Houthi rebels since late-March.
Oil traders are sensitive to any risky geopolitical news involving Saudi Arabia.