Oil prices posted their highest weekly rise since the end of July on higher demand forecasts and the restart of oil-hungry refineries in the United States.
The Organization of the Petroleum Exporting Countries this week forecast higher demand for its oil in 2018 and pointed to signs of a tighter global market, indicating its deal with non-OPEC states to cut output is helping tackle a glut.
That was followed by a report by the International Energy Agency (IEA) saying the glut was shrinking thanks to strong European and U.S. demand, as well as production declines in OPEC and non-OPEC countries.
"This boost to the market is attracting fresh speculative length," said Gene McGillian, director of market research at Tradition Energy in Stamford.
To sustain current high prices, continued strength in demand is needed, he said, noting that a weak fourth quarter in the U.S. could prompt traders to back off of long positions.