Brent crude futures climbed $1.14, or 1%, to $107.78 a barrel at 1003 GMT, surging almost 9% on Thursday in the most significant percentage gain after mid-2020.
U.S. West Texas Intermediate (WTI) crude futures rose $1.24, or 1.2%, to $104.22 a barrel, increasing an 8% jump.
Both benchmark contracts were set to finish the week by more than 4% after trading in a $16 range. Prices have fallen from 14-year highs hit nearly two weeks ago.
The supply crunch from traders evading Russian barrels, stuttering nuclear talks with Iran, dwindling oil stockpiles, and worries about a wave of coronavirus cases in China hitting demand have converged to produce a rollercoaster ride for crude this week.
The volatility has threatened players out of the oil market, likely exacerbating price swings.
Putin Is Not Backing Up
Notwithstanding battleground setbacks and punitive sanctions by the West, Russian President Vladimir Putin has shown little sign of relenting. The Kremlin displayed an agreement that had yet to be reached after the fourth day of talks with Ukraine.
PVM oil market analyst Stephen Brennock said that president Putin seems reluctant to end hostilities. This should guarantee that the energy complex remains well supported with plenty of scope for further volatility.
He also expressed that rising U.S. interest rates implied a more robust U.S. economy, which could underpin oil demand.
RBC Capital analyst Helima Croft cautioned that Russian oil export losses will likely prove durable and that offsetting barrels are short supply.
Underscoring tight supplies, consultancy FGE stated that on-land product stocks in
critical countries are 39.9 million barrels lower than the 2017-2019 average.