On Friday, oil prices rose over 1% to a nine-month high due to surging U.S. diesel futures and concerns over a shortage of oil after Saudi Arabia and Russia continued their supply restrictions this week.

Brent futures edged up by 0.8% at $90.65 per barrel, while US WTI added 0.7% at $87.51 per barrel.

Saudi Arabia and Russia, both members of OPEC, agreed to stretch their voluntary production restrictions of 1.3 million barrels per day till the end of the year this week.It will undoubtedly be challenging for Saudi Arabia to stop their reduction at the end of the year without causing a decline in prices.

According to energy services company Baker Hughes, this week saw the first weekly increase in oil rigs in the United States since June. Heating oil futures rose around 3% as a result of rising U.S. diesel prices, which also lifted crude prices.

Russian refineries will likely be undergoing seasonal maintenance in September, which could result in a decrease in diesel exports but an increase in oil exports, according to energy dealers.

The projections for demand in China continues to worry the oil market because the country's post-pandemic recovery has been sluggish and stimulus plans have not lived up to expectations.