Oil futures top $65 a barrel due to terror fears

Oil prices jumped more than $2 and closed above $65 a barrel Friday, pushed by Middle East terror fears and a production outage in Andean producer Ecuador.

The gains capped a volatile week for the oil market, as supply worries sparked by a missile attack on a US Navy ship off the coast of Jordan and the Ecuador production outage overshadowed earlier concerns that the record high prices were slowing demand.

"In the earlier part of the week, people were worried about demand and then these things happened and now people are worried about the supply side," said Jim Rollyson, vice president for energy research with Raymond James & Associates.