Investing.com - Oil fell Friday in thin trade as the Chinese Lunar New Year holiday kicked off.
Brent crude was off 54 cents, or 0.96%, at $55.70 at 07:30 ET. U.S. crude shed 35 cents, or 0.65%, to $53.43.
The market is looking to the latest Baker Hughes weekly U.S. rig count data later in the session.
The number of rigs operating in the U.S. in the previous week rose to 551, the highest level since November 2015.
An increase in North American shale activity could undermine the impact of agreed oil output cuts.
OPEC and non-OPEC producers have agreed to cut output by some 1.8 million barrels a day in the first half of this year.
The dollar index edged higher. A stronger dollar weakens demand for oil.