Investing.com - West Texas Intermediate oil futures rose sharply on Friday, amid indications U.S. oil drillers are cutting back on production following a collapse in prices over the summer.
On the New York Mercantile Exchange, crude oil for delivery in November jumped 79 cents, or 1.76%, to end Friday's session at $45.70 a barrel.
Industry research group Baker Hughes (NYSE:BHI) said late Friday that the number of rigs drilling for oil in the U.S. decreased by four last week to 640, the fourth straight weekly decline.
A lower U.S. rig count is usually a bullish sign for oil as it signals potentially lower production in the future.
For the week, New York-traded oil futures rose 73 cents, or 2.28%, as choppy volatile trade dominated price action, as mixed outlooks for supply and demand and for the global economy remained on investors' minds.
Elsewhere, on the ICE Futures Exchange in London, Brent oil for November delivery tacked on 43 cents, or 0.89%, to close the week at $48.60 a barrel.
London-traded Brent futures advanced 96 cents, or 2.38%, on the week, snapping a three-week losing streak.
Crude oil prices have been under heavy selling pressure in recent months, as ongoing worries over the health of the global economy fueled concerns that a global supply glut may stick around for longer than anticipated.
Global oil production is outpacing demand following a boom in U.S. shale oil production and after a decision by the Organization of Petroleum Exporting Countries last year not to cut production.
Meanwhile, the spread between the Brent and the WTI crude contracts stood at $2.90 a barrel by close of trade on Friday.
Elsewhere, the dollar rallied after data on Friday showed that the U.S. economy expanded 3.9% in the April-June quarter, up from an estimate of 3.7% reported last month, as stronger consumer spending and construction activity boosted growth.
The upbeat data eased concerns over the strength of the economy and supported the case for a U.S. interest rate hike this year.
Federal Reserve Chair Janet Yellen said after markets closed on Thursday that she expected the central bank to begin raising rates later in 2015, as long as inflation remained stable and the U.S. economy was strong enough to boost employment.
In the week ahead, investors will be focusing on Friday’s U.S. jobs report for September, which could help to provide additional clarity on the likelihood of a near-term interest rate hike.
Market participants will also be watching Wednesday’s euro zone inflation report amid concerns that the European Central Bank could ramp up its monetary stimulus program.
Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, September 28
New York Federal Reserve President William Dudley and Chicago Fed President Charles Evans are both to speak, at separate events.
The U.S. is to release data on personal income and spending as well as a report on pending home sales.
Tuesday, September 29
The U.S. is to report on the trade balance and consumer sentiment, while the American Petroleum Institute, an industry group, is to publish its weekly report on oil supplies.
Wednesday, September 30
The U.S. is to release the monthly ADP nonfarm payrolls report, as well as data on manufacturing activity in the Chicago region and a weekly government report on crude oil inventories.
Later in the day, Fed Chair Janet Yellen is to speak at an event in St. Louis.
Thursday, October 1
China is to release reports on manufacturing and service sector activity from the China Federation of Logistics and Purchasing, as well as the Caixin services index and the revised reading of the Caixin manufacturing index.
The U.S. is to release a report on initial jobless claims and data on manufacturing activity from the Institute for Supply Management.
Friday, October 2
Markets in China are to remain closed for a national holiday.
The U.S. is to round up the week with the closely watched nonfarm payrolls report, and data on factory orders.