The U.S. is the world's largest consumer of oil.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in September traded at USD91.13 a barrel on Friday, up 4.51%, off from a session high of USD91.70 and up from an earlier session low of USD87.31.
The U.S. economy added a net 163,000 net nonfarm payrolls in July, far more than market expectations for a gain of 100,000 and well above June's revised figure of 64,000.
The news not only primed sentiments that the U.S. economy will demand more oil and fuels, it also sparked a global risk-on trading session in which investors ditched the greenback for higher-yielding currencies, equities and commodities.
The news came in the heels of reports that U.S. stockpiles may be declining.
The U.S. Energy Information Administration said earlier this week that the country's crude oil inventories dropped by 6.52 million barrels in the week ending July 27, far more than forecasts for a decline of 709,000 barrels.
Total gasoline stocks fell by 2.17 million barrels, the EIA added.
Meanwhile, the Institute of Supply Management's service-sector index outpaced expectations last month as well.
In a report, the Institute for Supply Management said that its non-manufacturing purchasing managers' index rose to a seasonally adjusted annual rate of 52.6 in July, up from 52.1 in June.
The service sector employs the bulk of the U.S. labor market.
Analysts had expected the index to rise 52.0.
Investors also kept an eye on the Caribbean Sea, where Tropical Storm Ernesto continued to churn early Friday.
Some forecast models predicted the storm to intensify to a hurricane in the Caribbean Sea but closer to the oil-rich Gulf of Mexico in the coming days, which further pressured prices higher, as approaching storms affect offshore oil drilling.
On the ICE Futures Exchange, Brent oil futures for September delivery were up 2.53% and trading at USD108.58 a barrel, up USD17.45 from its U.S. counterpart.
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