Investing.com -- WTI crude futures fell slightly on Friday plummeting to a four-month low, amid continuing fears of a glut of oversupply on the global energy markets.
On the New York Mercantile Exchange, WTI for August delivery traded in a tight range between $50.16 and $51.23 a barrel, before settling at $50.88, down 0.03 or 0.07%. Texas Long Sweet futures closed lower for the third straight trading day and the 11th time in 14 sessions. At one point, WTI crude futures fell to its lowest level since April 6 when it dipped below $50 a barrel.
On the Intercontinental Exchange (ICE), brent crude for September delivery wavered between $56.41 and $57.34, before closing at $57.09 a barrel, up 0.17 or 0.30%. The spread between the international and U.S. benchmarks of crude stood at $6.21, above Thursday's level of $6.04.
Oil services firm Baker Hughes (NYSE:BHI) said in its weekly rig count on Friday that U.S. oil rigs last week declined by seven to 638. A week earlier, the rig count edged up by five to 645, marking the second consecutive week of weekly builds. At the end of June, the U.S. oil rig count fell mildly to halt a 29-week streak of weekly draws. Over the last 52-weeks, the count is still down by more than 900 rigs after peaking above 1,550.
The rig count has carried less weight among industry observers in recent months, as U.S. shale producers find ways to drill more effectively while taking less efficient rigs offline.
On Wednesday, the U.S. Energy Information Administration (EIA) said in its weekly Petroleum Status Report that crude inventories fell by 4.3 million barrels for the week ending on July 10. Analysts had expected a draw of 1.2 million barrels for the week. U.S. crude stockpiles are still at 461.4 million barrels, one of the highest levels at this time of year in at least 80 years. The level is nearly 100 million barrels higher than last year at this time.
Last November, Opec triggered a protracted battle for global market share by keeping its production ceiling above 30 million barrels per day. While the world's largest oil cartel reportedly employed the strategy in an effort to undercut U.S. shale producers, U.S. crude output has remained near record-highs over the last several months. Though production fell slightly last week to 9.562 million barrels per day it is still more than 1.1 million bpd higher than the average level from July, 2014.
As the two oil powers struggle for market share, prices remain depressed due to oversupply and anticipation of higher export levels following Tuesday's landmark Iranian Nuclear pact. WTI crude futures, for instance, are down roughly 50% over the last 52 weeks.
The U.S. Dollar Index, which measures the strength of the greenback versus a basket of six other major currencies, surged to a six-week high of 98.04 before falling slightly back to 97.95.
Dollar-denominated commodities such as crude become more expensive for foreign purchasers when the dollar appreciates.