1st LD Writethru: U.S. crude price drops despite falling rig count

U.S. crude price declined on Friday on speculation that the falling rig count won't offset the pressure of rising inventories.

U.S. field services company Baker Hughes said on Friday that the number of rigs drilling for oil in the country dropped by 37 to 1,019, the lowest level since July 2011. According to the company, there were altogether 556 rigs being pulled out of oil fields in U.S. since Dec. 5.

Analysts said U.S. crude prices went down on Friday as investors speculated that the retreat in rig count was not fast enough to balance the market, which was already overloaded with record high of inventories.

The Energy Information Administration said on Thursday that U.S. commercial crude oil inventories climbed 7.7 million to a record high level of 425.6 million barrels last week, the sixth consecutive week that inventories were at a seasonal record peak.

Light, sweet crude for March delivery moved down 0.82 U.S. dollars to settle at 50.34 U.S. dollars a barrel on the New York Mercantile Exchange, while Brent crude for April delivery rose 0. 01 U.S. dollars to close at 60.22 dollars a barrel. Endite