Crude prices surged to their four month high on Friday after Federal Reserve announced plan to boost the US economy through bond purchases. However, a jump in gasoline costs pushed up US consumer prices in August at the fastest pace in more than three years and squeezed spending on other items. Industrial production dropped 1.2 percent in August, the biggest decline since March 2009. Though, the weakness in dollar supported the crude, as weaker US currency makes the dollar-denominated commodities cheaper.
Benchmark crude for October delivery settled up by 69 cents, or 0.7%, higher at $99 a barrel on the New York Mercantile Exchange. In London, Brent crude for November delivery settled higher by 78 cents, or 0.7%, at $116.66 a barrel on the ICE.