With positive cues coming about manufacturing sector this month in China, oil was seen rising in London. However, there are chances that it may drop over the issue surrounding federal budget talks.

It has further been reported that as Brent's January crude contract is going to expire at the end of Friday's session, Brent managed to achieve over 1% weekly gain, thereby recovering from its losing trend in last two weeks.

"Oil is particularly dominated by Chinese potential demand, and any sign of an upturn in China tends to have a positive effect on oil", said Tony Machacek, a broker at Jefferies Bache in London. There have been factors like that seen in the Middle East, which have played a key role in playing with supply disruption in the region.

Further, benchmark U. S. contract lagged Brent as soon as there were reports concerning delays at BP Plc's huge refinery in Whiting, Indiana. Moreover, industry intelligence group IIR Energy has confirmed that BP is likely to start again somewhere in mid-April. Nonetheless, BP has confirmed that there would be no impact on the overall modernization project at the Whiting refinery. Moreover, it has also been seen that U. S. gasoline futures move up by over
2 percent to close above $2.66 a gallon.