U.S. crude futures closed sharply higher on Thursday as oversupply pressured the global market despite signs of tightening in the United States.
U.S. oil has gained support from falling inventories, reduced drilling and the lifting of a ban on most U.S. crude exports, which has pushed U.S. crude to a premium to global benchmark Brent for the first time in about a year.
Front-month West Texas Intermediate (WTI) crude futures settled 60 cents higher, or 1.6 percent, at $38.10 a barrel, posting a 9-percent gain on the week, the biggest weekly gain since early October.
Internationally traded Brent futures traded up 52 cents at $37.88 a barrel.
"For now, there is still an ample supply of crude and a huge amount in storage," said Olivier Jakob, oil analyst at Petromatrix in Switzerland.