2017.02.2402:20:00UTC+00​Oil Slips as Inventory Logs Seventh Week of Increase

U.S. oil prices slipped on Friday after official data showed a build in stockpiles in the previous week, marking the seventh consecutive week of increase. But the drop was muted as the inventory build were below expectations.

U.S. WTI declined 12 cents or 0.2% to trade at $54.33 per barrel, reversing some of the 1.6% gain it saw in the previous session. The contract was bound for a weekly gain of around 1.8%, its biggest increase so far this 2017.

Brent crude traded down 12 cents or 0.2% at $56.46 per barrel having closed up 1.3% in the prior session at $56.58 and was headed for a 1.1% weekly increase.

EIA's report showed crude inventories added 564, 000 barrels in the latest week, below the anticipated build of 3.5 million barrels.

While OPEC's deal to lower production in effort to curb the glut persisting oil markets have exhibited a high compliance rate, increased production in the U.S. have undermined its impact.

BMI Research said that the tightening fundamentals will cause the crude market to slide into backwardation in the following months.