Oil prices rose on Friday, setting crude futures on course for solid weekly gains, as market sentiment turned more upbeat despite ongoing oversupply, according to Reuters.
International benchmark Brent crude futures LCOc1 were trading at $44.88 per barrel at 07:13 GMT, up 35 cents, or 0.8%, from their last settlement, Reuters wrote.
U.S. West Texas Intermediate (WTI) crude was up 51 cents, or 1.2%, at $43.69 a barrel.
Brent has risen about 4.5% so far this week and WTI 8%, putting the contracts on track for a solid price rally. Crude is up by more than two-thirds since its 2016 lows between January and February.
Traders said that sentiment in the entire commodity complex had turned more confident despite ongoing oversupply, with new cash being put into the market by investors, lifting prices.
Falling output, especially in the United States, where many producers are shutting down following an up to 70% price rout since 2014, is also helping to lift the market.
Despite the recent rally, oil markets remain oversupplied as between 1 and 2 million barrels of crude are being pumped out of the ground every day in excess of demand, leaving storage tanks around the world filled to the brim with unsold fuel.
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