Investing.com - Oil futures ended lower on Friday, after data showed the U.S oil rig count rose the first time in 11 weeks last week, underlining concerns over growing supplies.
On the New York Mercantile Exchange, crude oil for delivery in July shed 55 cents, or 1.12%, to end the week at $48.62 a barrel, after falling to a session low of $48.33.
The U.S. benchmark extended losses in late trade after oilfield services provider Baker Hughes said Friday that the number of rigs drilling for oil in the U.S. increased by nine last week to 325, ending three straight months of weekly declines.
The renewed gain in U.S. drilling activity fueled speculation that domestic production could be on the verge of rebounding in the weeks ahead, underlining worries over a supply glut.
For the week, New York-traded oil futures lost 71 cents, or 1.43%, snapping a three-week win streak.
U.S. crude futures are still up nearly 80% since falling to 13-year lows at $26.05 in February as a decline in U.S. shale production boosted sentiment. However, with prices now at levels that make drilling economical for some firms, the oil rig count might start rising further and the decline in U.S. production may slow.
Elsewhere, on the ICE Futures Exchange in London, Brent oil for August delivery dipped 40 cents, or 0.8%, to settle at $49.64 a barrel, one day after OPEC failed to agree on a deal for a new output ceiling.
The Organization of Petroleum Exporting Countries meeting on Thursday ended without an agreement to limit production. Although Saudi Arabia attempted to appease smaller members such as Venezuela, Ecuador and Nigeria by pledging to avoid major output increases in the coming months, Iran held firm on its plan to ramp up production to pre-sanction levels from 2007.
Any coordinated attempts for a comprehensive production freeze likely will not occur until at least late-November when OPEC is scheduled to meet again.
For the week, London-traded Brent futures declined 31 cents, or 0.62%, following three straight weeks of sizable gains.
Brent futures prices are up by roughly 85% since briefly dropping below $30 a barrel in mid-February as unplanned supply disruptions in Africa and North America eased concerns over a global glut.
Meanwhile, Brent's premium to the West Texas Intermediate crude contract stood at $1.02 at Friday’s settlement, compared to a gap of 87 cents by close of trade on Thursday.
In the week ahead, oil traders will be focusing on U.S. stockpile data on Tuesday and Wednesday for fresh supply-and-demand signals.
Market players will also continue to monitor supply disruptions across the world for further indications on the rebalancing of the market.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, June 6
Federal Reserve Chair Janet Yellen is due to speak about the U.S. economic outlook and monetary policy at the World Affairs Council of Philadelphia.
Tuesday, June 7
The American Petroleum Institute, an industry group, is to publish its weekly report on U.S. oil supplies.
Wednesday, June 8
China is to release a closely-watched report on the trade surplus.
The U.S. Energy Information Administration is to release its weekly report on oil and gasoline stockpiles.
Friday, June 10
Baker Hughes will release weekly data on the U.S. oil rig count.