Extending gains from the previous session, crude oil futures settled higher on Friday, as the commodity continued to benefit from data showing a bigger than expected drop in U.S. crude inventories last week. Data released by US Energy Information Administration (EIA) on Thursday showed crude inventories in the country fell by 6.866 million barrels last week, far more than the expected drop of about 4.03 million barrels, thanks to the ongoing recovery in consumption that's underpinned this year's crude rally. Traders overlooked concerns about possible excess supply in the market in the near term following the Organization of the Petroleum Exporting Countries and their allies failing to agree on output policy. Meanwhile, according to a report released by Baker Hughes, the number of oil and gas rigs in the United States increased by 4 this week to 479, up 221 from the same time last year. Oil rig count rose by 2 to 378, while the number of gas rigs increased by 2 to 101.
Crude oil futures for August rose $1.62 or about 2.2percent to settle at $74.56 barrel on the New York Mercantile Exchange. September Brent crude gained $1.43 or nearly 2 percent to settle at $75.55 a barrel on London's Intercontinental Exchange.