Oil prices were seeing modest gains on Friday after having risen sharply the previous day to snap a three-day losing streak.
Benchmark Brent crude futures edged up 0.10 percent to $86.94 a barrel, while WTI crude futures were up 0.2 percent at $82.60.
A weaker dollar offered some support as overnight data showing an uptick in weekly jobless claims and declining labor costs added to bets that the Fed is done raising interest rates.
Investors were also reacting to supply concerns caused by the conflict between Israel and Palestine.
After rejecting international calls for a ceasefire to halt bloodshed in the besieged Palestinian territory, Israel said its army has completed the siege of Gaza City, which is considered the epicenter of Hamas.
"We're at the height of the battle. We've had impressive successes and have passed the outskirts of Gaza City. We are advancing," Israeli Prime Minister Benjamin Netanyahu said in a statement.
