Investing.com - U.S. oil futures slid lower on Friday, as traders locked in profits after the commodity above the $50 a barrel mark on Thursday for the first time in nearly eight months.
U.S. crude futures for July delivery were down 0.83% at $49.06 a barrel, near the previous session’s seven-month high of 50.21.
On the ICE Futures Exchange in London, the July Brent contract tumbled 1.23% to $48.99 a barrel, not far from Thursday’s six-month high of 50.51.
Oil prices rallied on Thursday as supply disruptions due to Canadian wildfires and militant attacks in Nigeria decreased daily output by 4 million barrels.
The commodity was also boosted after the U.S. Energy Information Administration said in its weekly report that crude oil inventories declined by 4.2 million barrels last week to 537.1 million.
Market analysts had expected a crude-stock decline of 2.5 million barrels.
Nymex oil prices are up nearly 85% since falling to 13-year lows at $26.05 on February 11 as declining U.S. shale output boosted sentiment. However, with prices now at levels that make drilling economical for some firms, the oil rig count might start rising soon and the decline in U.S. production may slow.
Brent futures prices are up by roughly 85% since briefly dropping below $30 a barrel mid-February, despite the collapse of talks at a Doha summit in April aimed at achieving a production freeze among OPEC and Non-OPEC producers. OPEC meets on June 2 in Vienna and may discuss the freeze initiative again.