In addition to this, the supply issues increased due to data revealing that US crude production plunged by 100k bpd (barrels per day) to 10.9 million bpd during the previous week.
While officially still defiant on the United States demand to cut oil imports from Iran to zero before the November 4 deadline or face sanctions, New Delhi is hustling to find ways around the impending crisis, which involves not just India's energy needs, but also the strategic port of Chabahar, which India is helping develop as a gateway into Afghanistan.
Bloomberg's tanker tracking data revealed there are now eight tankers holding 14 million barrels of Iranian crude or condensate, a form of light crude extracted from gas fields, anchored in the Persian Gulf.
Leave aside concerns about prospects for developing economies and the impact of Trump's trade wars that are darkening the outlook for oil demand.
An expected loss of Iranian oil, declining supply from another OPEC member, Venezuela, and other outages are boosting crude prices, which this week hit $80 a barrel, the highest since May.
After a volatile week, Brent was set for a 1.4 percent weekly rise and WTI 1.3 percent.
West Texas Intermediate futures for October delivery rose as much as 32 cents to $68.91 a barrel on the New York Mercantile Exchange and traded at $68.87 at 9:27 a.m.in Singapore.
Saudi Arabia has taken oil market 'hostage', Iran says
"Prices remain well supported as the market continues to fret about ongoing structural supply issues elsewhere", ANZ Research said in a note.
According to the International Energy Agency, the global demand for oil will exceed 100 million barrels per day in the next few years.
China will not buckle to US demands in any trade negotiations, the major state-run China Daily newspaper said in an editorial on Friday, after Chinese officials welcomed an invitation from Washington for a new round of talks.
Iran seems to be struggling again from USA sanctions and despite major buyers announcement for their full compliance with Washington's will to fully stop any incoming Iranian oil, Tehran is starting to store oil in fleet of supertankers again as impending United States sanctions force the Gulf country to revive a strategy it deployed under previous curbs.
Washington reimposed some of the financial sanctions from August 6, while those affecting Iran's petroleum sector will come into force from November 4.More news: Hurricane Helene could bring severe weather to the United Kingdom next week