Oil prices cooled on Friday as data from oilfield services firm Baker Hughes showed the decline in its oil rig count entered an eighth month.
Energy firms pulled three rigs from U.S. oil fields this week, the smallest drop in five weeks, data showed on Friday, a sign the collapse in drilling is coming to an end as crude prices recovered after falling 60 percent from last June to March.
It was the 29th straight weekly decline, bringing the total down to 628, the lowest since August 2010, oil services company Baker Hughes Inc said in its closely followed report.
In the latest week, drillers removed two rigs in the Permian, the biggest U.S. shale oil play in West Texas and eastern New Mexico, and three in the Bakken centered in North Dakota.
Futures pared losses in late morning trade as investors awaited the outcome of Iranian nuclear talks which could lead to a big increase in the country's crude exports at a time when the market is already over-supplied.