Investing.com -- WTI crude extended its recent slide on Friday falling to fresh four-month lows, amid a significant build in U.S. oil rigs last week.
On the New York Mercantile Exchange, WTI crude for September delivery traded between $47.74 and $49.02 a barrel before settling at 48.17, down 0.29 or 0.59%. At one point, Texas Long Sweet futures fell to its lowest level since early-April. U.S. crude futures have closed lower on seven of the last eight sessions and have declined by approximately 23% over the last month, as concerns related to global oversupply and the widespread ramifications of the Iranian Nuclear deal have weighed.
On the Intercontinental Exchange (ICE), brent crude for September delivery wavered between $54.30 and $55.59 before settling at 54.61, down 0.66 or 1.17%. The spread between the U.S. and international benchmarks of crude stood at 6.44, below Thursday's level of 6.81 at the close.
Oil services firm Baker Hughes (NYSE:BHI) said in its weekly rig count on Friday that U.S. oil rigs last week soared by 21 to 659. A week earlier, the rig count fell mildly by seven to 638. The minor decline was preceded by two weeks of builds, after 29 consecutive weeks of draws. The count is down sharply from its level last fall when it peaked above 1,500.
Energy analysts, however, are placing less stock in the rig count in comparison with recent years, as U.S. shale producers find creative ways to drill efficiently while removing less effective rigs. Earlier this week, U.S. crude output remained around 9.55 million barrels per day near its highest levels in more than 40 years.
Although Republican leaders in the U.S. Senate have excoriated Secretary of State John Kerry for accepting an unfavorable deal with Iran last week in Vienna, U.S. president Barack Obama has vowed to veto any Congressional action that condemns the nuclear accord. The United Nation and a host of western powers are expected to lift a wide range of severe economic sanctions against Iran upon the completion of the deal.
The accord is viewed as bearish for crude, as Iran is expected to double its export level to around 2 million barrels per day within months after the sanctions are eased. The gulf state reportedly has approximately 30 million barrels of crude in reserve ready for export. An outflow of Iranian oil into global energy markets could depress prices even further in a market saturated by oversupply.
The U.S. Dollar Index, which measures the strength of the greenback, versus a basket of six other major currencies, reached an intraday high of 97.75 before falling back to 97.37, up 0.09%.