Oil climbs over $1 on tanker attacks, no progress on peace

Crude oil exports from Russia's Sheskharis terminal at the Black Sea port of Novorossiysk were suspended on Friday following a drone attack, three sources familiar with the matter said, adding to disruptions at one of the country's key export outlets.

Flynn said the Ukrainian attack on the port of Novorossiysk was also boosting prices.

While Middle Eastern supplies are constrained, OPEC forecasts pointed to weaker demand growth and U.S. crude inventories posted their largest weekly increase in more than 3-1/2 years.

"This week's reports by the IEA and EIA were quite revealing. Storage is holding up much better than feared, which should pull oil prices lower," said Norbert Rucker, head of economics and next generation research at Julius Baer, referring to the International Energy Agency and U.S. Energy Information Administration.