Oil prices edged higher on Friday, reaching new two-month highs and posting the strongest weekly percentage gains this year as investors digested signs of an easing oversupply.
U.S. West Texas Intermediate (WTI) crude futures ended Friday's session up 67 cents, or 1.4 percent, to $49.71. It surged 8.6 percent on the week.
Brent crude futures were up $1.01, or 2 percent, at $52.50 a barrel a barrel by 2:34 p.m. (1834 GMT), rising more than 9 percent this week.
The front of the crude oil curve jumped into backwardation, with the month-ahead trading above the subsequent month, showing investors are not expecting recent gains to last. Brent also broke above its 200-day moving average, a key technical level, for the first time since May 30.