Crude rose on Friday, with Brent reversing course from a two-month low and U.S. crude ending higher, driven by demand for heating fuels and rising gasoline prices.
Still, gains were offset by expectations for increased supply from Libya and Iran. Brent prices have fallen almost 10 percent since August on expectations of a supply boost from Libya and Iran, narrowing the European benchmark's premium over U.S. crude to a low of $11.16, the tightest since Dec. 20.
U.S. gasoline and heating oil futures climbed more than 1 percent as demand in the U.S. rose sharply on forecasts of more cold weather. Government data released earlier in the week showed an unexpectedly large drawdown in oil stocks and in distillates, which include heating fuel.