WTI oil futures settled modestly lower on Friday after Baker Hughes reported its weekly U.S. oil rig count fell by just 1 rig.
The rig count has fallen every week since Dec. 12, though the pace of declines has fallen recently. The number of rigs drilling for crude in U.S. oilfields stands at 659, compared with 1,528 a year ago.
Oil fell more than 1 percent earlier on Friday as a rallying dollar and profit-taking ahead of a long U.S. holiday weekend cut short a two-day run-up in crude prices.
Heating oil, a proxy play for diesel, and gasoline slipped more than 1 percent too on concerns of outsized U.S. supply despite forecasts for a spike in driving this weekend and through Monday's Memorial Day holiday.
"No one wants to hold open positions ahead of a long weekend so books are being squared, bringing some consolidation," said Carsten Fritsch, senior oil and commodities analyst at Commerzbank in Frankfurt.