Oil prices rose 3 percent on Friday as a report showing weaker U.S. jobs growth in August suppressed the dollar, but crude futures remained on track for a big weekly loss on glut concerns.
U.S. employment growth eased more than expected last month after two straight months of robust gains and wage gains moderated, casting doubts the Federal Reserve Open Market Committee will raise interest rates at its Sept. 20-21 meeting.
The dollar index weakened after the jobs report, making oil and other greenback-denominated commodities more affordable for holders of the euro and other currencies.
The number of oil rigs operating in U.S. fields rose by 1 to a total of 407, marking the ninth increase in 10 weeks following a flat reading last week, according to a weekly count from energy services provider Baker Hughes. At this time last year, drillers were operating 662 oil rigs.