Investing.com - Crude oil futures retreated from lofty highs hit in the previous session on Friday, as investors cashed out of the market to lock in gains from a recent rally.
On the New York Mercantile Exchange, crude oil for delivery in May shed 97 cents, or 1.71%, to settle at $55.74 a barrel by close of trade on Friday. A day earlier, Nymex oil prices hit $57.42, the most since December 23.
Despite Friday's decline, New York-traded oil prices increased $3.93, or 7.94%, on the week, the fourth consecutive weekly gain.
U.S. oil futures have been well-supported in recent sessions due to mounting expectations that U.S. shale oil production has peaked and may start falling in the coming months amid an ongoing collapse in rigs drilling for oil.
Industry research group Baker Hughes (NYSE:BHI) said late Friday that the number of rigs drilling for oil in the U.S. fell by 26 last week to 734, the lowest since 2010. It was the 19th straight week of declines.
Market players have been paying close attention to the shrinking rig count in recent months for signs it will eventually reduce the glut of crude flowing into the market.
Elsewhere, on the ICE Futures Exchange in London, Brent for June delivery slumped 53 cents, or 0.83%, on Friday to settle at $63.45 a barrel by close of trade. On Thursday, Brent rallied to $64.95, the highest level since December 11.
For the week, London-traded Brent futures jumped $4.37, or 7.63%, the second straight weekly advance.
Saudi Arabia increased oil output by about 668,000 barrels a day in March from a month earlier to hit a total of 10.294 million barrels, the most in three decades, underlining concerns over a glut in global supplies.
Meanwhile, the spread between the Brent and the WTI crude contracts stood at $7.71 a barrel by close of trade on Friday, compared to $6.23 in the preceding week.
In the week ahead, investors will be looking ahead to reports on the U.S. housing sector and data on durable goods orders for further indications on the strength of the recovery.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets. The guide skips Monday as there is no relevant data on this day.
Tuesday, April 21
The American Petroleum Institute, an industry group, is to publish its weekly report on oil supplies.
Wednesday, April 22
The U.S. is to release data on existing home sales as well as a government report on oil inventories.
Thursday, April 23
China is to release private sector data on manufacturing activity.
Later Thursday, the U.S. is to report in initial jobless claims and new home sales.
Friday, April 24
The U.S. is to round up the week with a report on durable goods orders.