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.