U.S. crude settled at the highest level since Dec. 11 after government data showed the first crude stock draw in five months at the U.S. Cushing, Oklahoma hub suggested an oil glut may be starting to ease.
U.S. crude settled up $1.52 at $58.58, having earlier touched $59.33, its highest level since Dec. 12. The benchmark West Texas Intermediate has risen about 40 percent from its March 18 low of $42.03.
Brent crude oil was trading 1.13 higher at $65.76 a barrel by 2:36 p.m. EDT (1836 GMT), after rising to $66.72, the highest level since Dec. 9.
The Energy Information Administration reported a smaller-than-expected rise last week in crude inventories throughout the United States also aided sentiment, although some traders felt the market was ignoring bearish elements like higher production.
U.S. crude inventories rose last week to hit a record high for the 16th straight week. But the build of 1.9 million barrels was smaller than the 4.2 million barrels cited by industry group the American Petroleum Institute and a forecast of 2.3 million in a Reuters poll.
Crude stocks at Cushing, the delivery point for U.S. crude futures, fell 514,000 barrels, the first decline since November. U.S. weekly crude production also rose slightly.