U.S. producer prices increased slightly more than expected in August amid higher costs for services, but the trend remained consistent with subsiding inflation.

In the US, industrial production costs rose slightly more than expected on a monthly basis, limiting the possibility of a 50 b.p. cut by the Fed

Oil prices rose more than $1 a barrel on Friday, extending their rally and putting crude on course for a weekly gain on the back of output disruptions in the U.S. Gulf of Mexico after Hurricane Francine forced the evacuation of production platforms.