Oil prices have increased following renewed speculation that the US could increase interest rates later this year, which has also led to a rise in dollar value.
Brent futures stood at $48.33 per barrel up just 16 cents, while the US West Texas Intermediate (WTI) futures were at $45.27 a barrel, a rise of 36 cents, Reuters reported.
An increase in US dollar index by 0.5% also dragged oil prices, following suggestion by US Federal Reserve Chair Janet Yellen that the central bank may raise interest rates soon.
Speaking at the University of Massachusetts, Yellen said that the rate hike would likely be appropriate even though the decision hinges on economic data.
S&P analysts said that there has not been a fall in production even due to a reduction in capital spending of 30%-40% this year by many US exploration and production companies.
Due to a decline in US rig count and a cut in crude inventories, oil prices increased by over 25% in late-August, hinting a tightening in the North American market.
USA market indexes opened higher for the day on Friday, following a speech the prior day from Federal Reserve Chairwoman Janet Yellen regarding the economy and interest rates.
Yellen, speaking a week after the Fed delayed a long-anticipated rate hike, saidshe and other Fed policymakers do not expect recent globaleconomic and financial market developments to significantly affect the central bank's policy.
NEW YORK, Sept 25 (Reuters) - U.S. Treasuries prices declined on Friday after Federal Reserve Chair Janet Yellen somewhat revived expectations of an interestrateincrease by year-end and data showed the nation's economy grew more than previously estimated in the second quarter.
The Standard & Poor's 500 fell 6.52 points, or 0.3 percent, to 1,932.24 on Thursday.
Dow Jones futures jumped more than 200 points and the main German benchmark index DAX gainedmore than 300 points an hour before the opening of trade in USA markets. The index was on track for a weekly gain of about 1.4 percent, its strongest since mid-July. Nike climbed $9.45, or 8.2 percent, to $124.25.
On the economic front, real gross domestic product (GDP) increased at an annual rate of 3.9 percent in the second quarter of 2015, according to the "third" estimate released by the US Commerce Department on Friday. The strength came from gains in consumer spending, business investment, and residential construction. She also suggested global economic weakness won't be significant enough to alter the central bank's plan to raise its key short-term rate from zero by December.
Global markets were battered in August following wild dives on China's main stock markets that sparked fears that an unraveling of the Chinese economy might hamper growth in the rest of the world. The dollar was up 0.47 percent against the franc at 0.97985 franc.
Automakers in Europe are still suffering in the wake of Volkswagen's emissions scandal. A strong dollar along with falling energy prices have mostly kept the lid on consumer prices, but won't remain, and "inflation will gradually return to strong percent over the next two or three years".
Yellen's comments saw German government bond yields and the USA dollar rise.