Oil prices posted weekly gains of more than 3.5 percent as demand concerns eased on positive economic data.
Oil prices also rose last week on signals from U.S. Federal Reserve policymakers that they may cut interest rates as soon as September, while concerns about a widening conflict in the Middle East continue to raise supply risks.
Price movements
During Friday's trading, Brent crude futures rose 50 cents to settle at $79.66 a barrel.
US West Texas Intermediate crude futures also rose 65 cents to $76.84 a barrel.
Brent crude gained more than 3.5 percent during the week, while West Texas Intermediate crude rose more than 4 percent.
Three Federal Reserve policymakers indicated Thursday that they are becoming more confident that inflation is falling enough to allow interest rates to be cut.
Meanwhile, data showed that the number of Americans filing new claims for unemployment benefits fell more than expected last week, suggesting that concerns about a weak labor market are overblown and in turn easing recession fears.
Prices were also supported by China's consumer price index, which rose slightly faster than expected last month, data from the statistics bureau showed.
The leaders of the United States, Egypt and Qatar on Thursday called on Israel and Hamas to meet for negotiations on August 15 to finalize a ceasefire in Gaza and release the hostages.
The conflict between Russia and Ukraine also continued, with Moscow moving additional tanks, artillery and missile systems to the southern Kursk region on Friday.
Meanwhile, the dollar index, which measures the currency against six other currencies, fell 0.136 percent to 103.14 after three days of gains.
The weaker dollar boosts demand for crude as oil prices fall for foreign buyers.
Prices were also supported by Libya's National Oil Corporation declaring force majeure on the Sharara oilfield effective Wednesday, saying production at the field had been gradually reduced due to protests.
