Oil prices surged on Friday, and Brent crude posted its largest weekly gain since mid May, as investors positioned for the start of third quarter trading while a weaker dollar boosted prices of most commodities.

Indonesia's removal of taxes on oil and gas explorers is a good first step, but more is needed to lure investment from companies that have cut budgets and laid off staff after a precipitous plunge in prices, industry analysts said on Friday.

India is set to buy 6 million barrels of Iranian crude for its strategic oil reserves as negotiations with the United Arab Emirates' national oil company for supplies are stuck over commercial terms, industry sources said.

Japan plans to rush through a bill to provide more financial muscle for its companies to compete for global energy assets, just as other resource-hungry Asian economies such as China and India are also looking to snap up depressed oil assets.