NYMEX crude down in Asia with U.S. rig count ahead

Investing.com - Crude oil prices fell in Asia on Friday as investors looked ahead to weekly U.S. data on drilling activity.

On the New York Mercantile Exchange, WTI crude for July delivery eased 0.11% to $60.66 a barrel.

Investors await Friday's weekly U.S. rig count from oil services firm Baker Hughes (NYSE:BHI) for further indications on supply level nationwide. Last week, the number of rigs drilling for oil in the U.S. fell by eight to 660, marking the 23rd consecutive weekly decline.

Overnight, crude futures soared on Thursday extending gains from one session earlier, amid easing concerns of oversupply and continued fighting in the Middle East.

Before U.S. crude futures rebounded on Wednesday when they gained more than 1.7% on the session, WTI crude closed down on five of its previous six session to dip below $58 a barrel. It came days after the U.S. benchmark for crude capped an extended rally by reaching a five-month high at $62.75 on May 13.

On the Intercontinental Exchange (ICE), Brent crude for July delivery rose $1.54 or 2.37% to $66.57 a barrel on Thursday.

In a positive development for energy companies, crude stockpiles have declined for three consecutive weeks amid increased refinery demand, as summer driving season nears.

At the Cushing Oil Hub in Oklahoma, the nation's largest storage facility of crude, storage capacity remains near 80%, according to Genscape, Inc. In April, the figure hovered around 90%, exacerbating concerns that the U.S. could reach full storage capacity.

Investors will keep a close eye on crude output in Alaska after last week's draw of 112,000 barrels per day. The slowdown surprised a number of analysts, which expected production declines to be concentrated among U.S. shale fields. Alaskan crude is more expensive than its counterpart in the lower 48 states.

Tensions increased in the Middle East after the Islamic State seized the historic Syrian city of Palmyra. Following the advance, ISIS fighters reported controlled about 40% of Syrian territory, including almost all of its oil fields.

The conflict in Syria, however, will likely have little impact on global crude price. Syrian crude is heavy and sour with high sulfur content, according to the EIA, making the refining process challenging. Syria is ranked 63rd in the world in crude production at 23,000 barrels per day, ranking below smaller Gulf neighbors such as No. 20 Oman, No. 39 Yemen and No. 54 Bahrain.

Elsewhere, workers scurried to clean up an oil spill, which stretched nine miles off the coast of California. More than 20,000 gallons of crude reached a sea near Santa Barbara after a pipeline to an offshore rig leaked.