Oil futures edged higher on Friday with a lift from a weaker dollar but remained down for a fifth week in a row and close to a 10-month low as OPEC-led production cuts have failed to substantially reduce a global crude glut.
Prices pared earlier gains after oil services firm Baker Hughes Inc released its widely followed report showing U.S. drillers added 11 oil rigs this week, the biggest increase in three weeks.
"The higher rig count this week reflects decisions made a couple of months ago when oil prices were higher," said James Williams, president of WTRG Economics in Arkansas, noting he expects the current low prices to cause the count to fall in some weeks over the next month or two.
Both Brent and WTI were on track to decline for a fifth week in a row, which would be the longest slumps for the front-month contracts since August 2015.
The U.S. dollar was down 0.3 percent against a basket of currencies, on track for its biggest daily percentage decline since early June after weaker-than-expected U.S. economic data. This boosted greenback-denominated oil.