Oil settles lower, Brent records second-weekly loss

Oil drilling rigs

Oil prices ended Friday lower as US consumer sentiment sank to its lowest level in six months and inflation forecasts increased.

Brent crude futures for July delivery dropped 1.3%, or $1.09, to settle at $82.79 a barrel.

Similarly, futures prices for US West Texas Intermediate (WTI) crude lost 1.25%, or $1, to $78.25 per barrel. Both contracts recorded a weekly loss of 0.2% each.

The US drilling rig count fell three units to 496 in the week ended May 10, Baker Hughes energy services firm said in its closely followed report on Friday.

US consumer sentiment fell by 12.7% month-on-month to 67.4 points in May, compared to forecasts of 76.3, its lowest level in six months.

Inflation forecasts increased from 3.2% to 3.5%, the highest level since November reading (4.5%).