2023.05.2619:37:00UTC+00Oil Futures Settle Higher

Crude oil prices climbed higher on Friday after Russia played down the prospect of additional output cuts by OPEC+.

Russian Deputy Prime Minister Alexander Novak said on Thursday that he doesn't think there will be new steps with regard to production cuts.

Oil was also supported by reports that U.S. lawmakers are closing in on a deal that would raise the government's $31.4 trillion debt ceiling for two years while capping spending on most items.

West Texas Intermediate crude oil futures for July ended higher by $0.84 or about 1.2% at $72.67 a barrel. WTI crude futures gained about 1.6% in the week, after surging 2.2% last week.

Brent crude futures settled at $76.95 a barrel, gaining $0.69 or about 0.9%. Brent futures gained 1.8% in the week.

According to the data released by Baker Hughes, total active drilling rigs in the U.S. fell by another 9 to 711, the lowest count in a year.

Drilling rigs targeting crude oil in the U.S. fell by 5 to 570, its lowest number since last May, and gas rigs dropped by 4 to 137, the lowest since March last year. Total rigs targeting crude oil in the Permian Basin gained 1 to 347.

"The upcoming week could deliver a make-or-break moment for oil as we will see if Chinese manufacturing is rebounding, if the US labor market is reading to soften, how oil giants Exxon and Chevron address climate ambitions at their AGMs, and what if the Saudis and Russians can reach agreement on what to drive OPEC+ do with output," says Edward Moya, Senior Market Analyst at OANDA.