Investing.com -- Crude futures continued their extended slide on Friday falling to near monthly lows, amid a miniscule build in U.S. oil rigs last week.
On the New York Mercantile Exchange, WTI crude for December delivery traded between $44.22 and $45.75 a barrel, before settling at $44.58 , down 0.81 or 1.78% on the day. At one point, the front month contract for U.S. crude futures fell to its lowest level since September 24. Texas Long Sweet futures have now closed four times in the last five sessions and the eighth time in the last 11 trading days. For the week, WTI crude lost approximately 6.5%.
On the Intercontinental Exchange (ICE), brent crude for December delivery wavered between $47.45 and $48.65 a barrel, before closing at $47.91, down 0.11 or 0.23% on the session. North Brent Sea crude futures also fell to near-monthly lows during Friday's session. Meanwhile, the spread between the international and U.S. domestic benchmarks of crude stood at $3.39, above Thursday's level of $2.82 at the close of trading.
On Friday afternoon, oil services firm Baker Hughes (N:BHI) said the U.S. oil rig count for the week ending on Oct. 16 fell by 1 to 594. It marked the eighth straight week of weekly declines, as U.S. production continues to hover near 2015 yearly lows. The count of oil and gas rigs combined remained unchanged at 787, its lowest level since April, 2002.
Energy traders have kept a close eye on the rig count since a shocking move by OPEC last November triggered a downturn in global oil prices. In an effort to defend market share, OPEC left its production ceiling above 30 million barrels a day flooding markets with a glut of oversupply. After falling below $40 a barrel in August, any supply build is viewed as bearish for crude.
Earlier this week, officials at an OPEC meeting in Vienna reportedly discussed the risks associated with a wide range of oil investments, but did not address any plans to cut production. Representatives from eight non-OPEC members, including Russia were present at the meeting. OPEC meets next on Dec. 4.
The U.S. Dollar Index, which measures the strength of the greenback versus a basket of six other major currencies, gained more than 0.7% to an intraday high of 97.19. At one point on Friday, the index reached its highest level since mid-August.
The surge in the dollar came as China cut its one-year lending rate and removed a ceiling on rates banks were forced to pay depositors on Friday. China is the world's second-largest consumer of crude oil behind the U.S.
Dollar-denominated commodities such as gold become more expensive for foreign purchasers when the dollar appreciates.