Oil prices rose by 2.5 per cent on Friday after a US official told Reuters that the US does not expect Saudi Arabia to immediately increase oil production and after investors questioned the ability of the Organisation of the Petroleum Exporting Countries (OPEC) to significantly increase its crude oil production.
This statement, made by an official during US President Joe Biden's visit to the Middle East, comes at a time when the surplus production capacity of OPEC member countries is declining.
Brent Crude Futures settled at $101.16 a barrel, recording an increase of $2.06, or 2.1 per cent, while West Texas Intermediate settled at $97.59 a barrel, gaining $1.81, or 1.9 per cent.
For September delivery, Brent Crude Futures gained $2.06, or 2.08 per cent, settling at $101.16 a barrel.
The two indices recorded their biggest weekly decline in about a month. This is largely due to concerns at the beginning of the week that an imminent recession could curb demand.