Oil prices fluctuated Friday on profit-taking after U.S. oil price reached a 16-month high.
With no data due during the day, investors were paying more attention to the equity markets. U.S. stocks retreated on Friday from a record run on the previous trading day which sent the Dow Jones Industrial Average and the S&P 500 to fresh record highs.
Signs of improvement in the U.S. economy helped oil prices to reach the highest level in 16 months. U.S. is the largest oil consumption country in the world.
U.S. economy maintained a "modest to moderate pace" of growth in recent weeks, bolstered by industries from housing to manufacturing, the Fed's Beige Book business survey showed Wednesday.
Reports from the twelve Federal Reserve districts indicated that overall economic activity continued to increase at a modest to moderate pace since the previous survey. Manufacturing and hiring expanded in most districts.
The better-than-expected job data also underpinned oil prices. The number of Americans initially applying for unemployment aid fell to a two-month low last week, the U.S. Labor Department reported Thursday.
Light, sweet crude for August delivery gained 1 cent, to settle at 108.05 dollars a barrel on the New York Mercantile Exchange.
Brent for September delivery went down 0.63 dollars, to close at 108.07 dollars a barrel.