WASHINGTON (dpa-AFX) - Crude oil prices climbed higher on Friday amid expectations of increased demand even as the Organization of the Petroleum Exporting Countries (OPEC) and its allies decided to increase output.
Data showing a stronger than expected in increase in U.S. non-farm payroll employment in the month of May contributed as well to the uptick in oil prices.
West Texas Intermediate Crude oil futures for July ended higher by $2.00 or about 1.7% at $118.87 a barrel.
Brent crude futures were up $2.72 or 2.3% at $120.33 a barrel a little while ago.
Saudi Arabia and other OPEC+ states agreed to bring forward oil production rises to offset Russian output losses because of Western sanctions.
The oil exporters' cartel said on Thursday that it would increase supply by 648,000 barrels per day in July and August, over 200,000 barrels per day more than scheduled under a supply agreement with other producers, including Russia, known as OPEC+.
Analysts are of the view that OPEC+ is still likely to supply considerably less oil to the market than agreed.
Data from U.S. Energy Information Administration on Thursday showed crude stockpiles fell by 5.1 million barrels last week. Gasoline inventories too feel last week.
Meanwhile, the overall U.S. rig count remained unchanged at 727 this week, according to the latest tally from Baker Hughes Co.
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