Oil prices stabilized on Thursday, though futures remained under pressure on signs of another storage build at the hub for U.S. crude futures.
In early trade, U.S. crude's West Texas Intermediate (WTI) futures surged to a 2016 peak as the International Energy Agency raised its 2016 global oil demand growth forecast to 1.2 million barrels per day (bpd) from 1.16 million in April.
Brent crude futures also rallied early as the IEA, the western world's energy watchdog, noted output from Nigeria, Libya and Venezuela is down 450,000 bpd from a year ago.
U.S. West Texas Intermediate (WTI) settled 1 percent higher, or 47 cents, at $46.70 on Thursday, having earlier hit $47.02, the highest level since early November.
International Brent crude futures were trading at $47.99, up 0.8 percent. They were off an intraday high of $48.12.