Oil prices have surged due to weakened US dollar and disruption of crude supplies from Libya.
Furthermore, positive indications from the OPEC officials for an extension in the output-cut deal also boosted oil prices.
However, the oil market remains bloated due to growing US production which may again see another rise in stocks in the following week.
Brent crude futures LCOc1 climbed 48 cents to trade at $51.23 per barrel while US West Texas Intermediate (WTI) crude futures CLc1 gained 48 cents to touch at $48.21 a barrel, reported Reuters.
Both oil benchmarks increased by more than 20 cents after Libya reported a fall in production by one-third due to conflicts in the country.
WTI was supported with the fall in US currency.
Iranian Oil Minister Bijan Zanganeh told the news agency that OPEC members are likely to extend the deal, which is scheduled to end in June this year.
Saxo Bank head of commodity strategy was quoted by Reuters as saying: “Supply remains in focus ahead of the (US Energy Information Administration) EIA report where an increase of more than 322,000 barrels will see Cushing hit a record.
“As a result of rising production and inventories we are seeing WTI's discount to Brent widen to the highest since 2015.”
Rising stocks at Cushing decrease the US benchmark price, thereby increasing its discount to Brent.
This makes US crude oil appealing for importers, further negating the impact of OPEC output-cuts.