U.S. West Texas Intermediate and international-benchmark Brent crude oil settled sharply higher as investors continued to position themselves ahead of a key meeting of OPEC producers that may decide to increase global output.
Moscow and Riyadh have argued that OPEC should heed calls from major oil-consuming countries like China, India, and the United States to lift their 2016 production freeze to rein in rising oil prices.
The real increase will be smaller because several countries that recently underproduced oil will struggle to return to full quotas while other producers will not be allowed to fill the gap, OPEC sources have said.
Patrick DeHaan, an analyst for GasBuddy, a gasoline price tracking service, said a middling OPEC increase - more than 600,000 barrels per day - would make it less likely that Americans will pay an average of $3.
"I'm confident that at the end of the day reason will prevail", Saudi Energy Minister Khalid Al-Falih told reporters in Vienna after a succession of meetings. Iran faces constraints on its oil exports after Trump reimposed sanctions on May 8.
Brent oil prices rose 1% to 74.03 in London trading on Friday.
Saudi Arabia is pushing for a hike in oil output, putting the fate of an 18-month-old supply-cut deal between OPEC members and allied countries credited with clearing a global oil glut and lifting crude prices in jeopardy.
WTI crude oil prices ticked higher by 1.4 percent to $65.84/bbl on Wednesday following a drop in US commercial crude inventories this week, but all eyes will be on Vienna by the end of the week.
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OPEC and its allies have since previous year been participating in a pact to cut output by 1.8 million bpd.
The policy that has propelled the Nigerian economy upward since January 2017 might be maintained, as Saudi Arabia is considering a compromise to keep OPEC production.
"We want to prevent the shortage and the squeeze that we saw in 2007-2008", Falih said, referring to a time when oil rallied close to $150 per barrel.
Zangeneh also said on Friday OPEC would change the structure of the current deal, but did not elaborate.
Looming large over markets, however, was a June 22 meeting in Vienna of OPEC together with some other producers including Russian Federation, to discuss forward supply policy.
Falih, in a nod to the problems with faltering production in Venezuela, Iran, and Libya, acknowledged that "not every country" will be able to join the production increase.
Reuters, quoting unnamed OPEC sources, said Iran had demanded that usa sanctions be mentioned in the group's post-meeting communiqué.
"Yergin said Saudi Arabia and the United Arab Emirates support the current, tougher US policy toward Iran, Saudi Arabia's rival for influence in the region, and so will want to support Trump's call for lower prices".