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Brent crude futures for October rose 31 cents to $85.45 a barrel
by 1059 GMT, while U.S. West Texas Intermediate crude for
September were up 32 cents to $81.87.
Both benchmarks were set for their longest streak of weekly
gains this year. Brent has risen 15.4% and WTI by 18.2% during
the last six weeks.
Saudi Arabia on Thursday extended a voluntary oil production cut
of 1 million barrels per day (bpd) to the end of September,
keeping the door open for another extension. Russia has also
elected to reduce its oil exports by 300,000 bpd next month.
Meanwhile, OPEC+ - the Organization of the Petroleum Exporting
Countries and allies - is meeting on Friday to review the
market.
"In isolation, oil looks so very good. But we have not traded in
isolation for years and although we often like to feel our
market is detached from the wider suite, it is not," said John
Evans of oil broker PVM.
"It is a large piece in the puzzle of global markets and while
macroeconomic data deliver unfavourable growth signals, the
however(s) will continue."
Those questions came in the form of the latest batch of U.S.
data showing tight labour markets and a slowing service sector,
raising concerns of an economic slowdown that could curb demand
for oil.
"A strong dollar has weighed on crude prices and everyone wants
to know if a hot labour market will force the Fed to tighten
policy even further," said Edward Moya, an analyst at OANDA,
referring to the U.S. Federal Reserve potentially raising
interest rates.
Additionally, the downturn in euro zone business activity
worsened more than initially thought in July and the Bank of
England raised its interest rate to a 15-year peak on Thursday.
Separately, an overnight Ukrainian naval drone attack on
Russia's Black Sea navy base at Novorossiysk - a civilian port
that handles 2% of the world's oil supply - temporarily halted
all ship movements before normal operations were resumed.
(Reporting Natalie Grover in London; Additional reporting by
Arathy Somasekhar in Houston and Sudarshan Varadhan in
Singapore; Editing by Christian Schmollinger, Simon
Cameron-Moore and Sharon Singleton)
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