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Crude oil prices climbed higher on Friday, lifted by International Energy Agency's forecast that world oil demand will increase by 110,000 barrels a day to 1.5 million barrels next year.

The IEA said in its monthly oil market report that maintaining the world's oil supply will be very challenging, due to fresh U.S. sanctions against Iran.

However, the agency noted that there were risks to the demand forecast from the escalating trade dispute along with any rally in prices caused by supply constraints.

According to reports, China has decided to remove crude oil from its latest tariff list. Meanwhile, Baker Hughes reported today that the number of active U.S. rigs count increased by 10 to 869 for the week. Last week, rig count had dropped by 2.

Crude oil futures for September delivery ended up $0.82, or 1.3%, at $67.63 a barrel. On Thursday, oil futures ended ended down $0.13, or 0.2%, at $66.81 a barrel.

For the week, oil futures shed 1.3%, with concerns about likely supply shortage due to sanctions on Iran and disruptions in Libya and Venezuela.

Concerns that the U.S.-China trade war could hurt global economic growth and result in a drop in demand for crude too contributed to oil's fall in recent sessions.