Oil prices have risen after the sentiment gained a boost for a market recovery due to tightening of supply, as well as an improving outlook worldwide.
Front-month Brent LCOc1 crude futures rose 65 cents and traded at $39.37 a barrel, while the US West Texas Intermediate (WTI) futures reached $36.57 a barrel, up 65 cents, Reuters reported.
Traders said that strengthening of the sentiment led to a rise in oil prices, with large amounts of short positions being closed.
Energy companies in the US reduced their oil rig count as producers cut drilling costs in order to focus on uncompleted wells, data highlighted last week.
A glut of physical oil remains, which is again expected to weigh on prices.
In 2015, the companies cut an average of 18 oil rigs per week, wiht a total of 963 for the year.
Oil services company Baker Hughes said that energy companies removed eight oil rigs in the week ending 4 March.
Julius Baer head of commodities research Norbert Ruecker told the news agency: "The past days’ oil price rally was from our perspective less related to a shift in fundamentals but a recovery of sentiment."
