Oil prices are headed for a jump of 7.7%, the biggest weekly gain in months, as early trading yesterday saw crude continue to gain on political tensions.

Brent crude is up 7.7%, its biggest weekly gain since January 2019. Brent crude's November contract was $ 64.75 a barrel, up 35 cents.

U.S. West Texas Intermediate (WTI) crude futures rose 51 cents to $ 58.64 a barrel, heading for a 7.1 percent gain this week, the biggest weekly gain since June 2019.

Russia and Ukraine said progress had been made towards an agreement to transport Russian natural gas through Ukrainian territory to Europe.

The two sides said they had drawn up the legal framework for the agreement, which should be finalized by the end of this year.

While at least 14 countries get half of their gas from Russia, there has been an abundant supply this year as the weather is better than usual, affecting demand.

Ukraine has disrupted Russian gas supplies to Europe through its territory twice during the winter in the past 13 years. Ukraine's commitment to EU energy controls will eliminate the risk of further unrest in the future and provide a stable and flexible legal framework to ensure Russian gas flows to the European bloc, Bloomberg reported.