Investing.com - West Texas Intermediate oil futures rose to the highest level in almost two weeks 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 December tacked on 53 cents, or 1.15%, to end Friday's session at $46.59 a barrel. It earlier rose to $47.03, the highest since October 19.
Industry research group Baker Hughes (N:BHI) said late Friday that the number of rigs drilling for oil in the U.S. decreased by 16 last week to 578, the ninth straight weekly decline and the lowest level since June 2010.
Over the prior nine weeks, drillers in the U.S. have cut 97 rigs. A lower U.S. rig count is usually a bullish sign for oil as it signals potentially lower production in the future.
On the week, New York-traded oil futures surged $1.85, or 4.46%, helped largely by Wednesday's 6% rally, driven by a smaller-than-expected rise in U.S. crude inventories and sharper-than-expected falls in gasoline and diesel stockpiles.
Elsewhere, On the ICE Futures Exchange in London, Brent oil for December delivery rose 76 cents, or 1.56%, on Friday to close at $49.56 a barrel after climbing to a session peak of $50.00, the most since October 19.
For the week, London-traded Brent futures advanced $1.56, or 3.27%, the first weekly gain in three weeks.
The oil market has been volatile in recent months amid uncertainty about how quickly the global glut of crude is set to shrink.
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.
Despite this tighter outlook for North America, output remains robust in other countries. Saudi Arabia and other Gulf OPEC members have indicated they will continue to stick to their policy of defending market share by keeping production high.
Oil prices have lost nearly 60% since last summer as lingering concerns over a glut in world markets drove down prices.
Meanwhile, the spread between the Brent and the WTI crude contracts stood at $2.97 a barrel by close of trade on Friday compared to $2.74 by close of trade on Thursday.
In the week ahead, investors will be focusing on Friday’s U.S. jobs report for October, which could help to provide clarity on the likelihood of a near-term interest rate hike.
Market players will also be watching data on China's manufacturing sector, amid ongoing concerns over the health of the world's second biggest economy.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.