The West Texas Intermediate for September Delivery added 0.67 dollar to settle at 49.71 dollars a barrel on the New York Mercantile Exchange, while Brent crude for September delivery gained 1.03 dollar to close at 52.52 dollars a barrel on the London ICE Futures Exchange.
Oil prices held just below eight-week highs on Thursday, supported by a steeper-than-expected decline in USA crude inventories that boosted expectations of a shift to a more balanced market.
More market watchers are getting upbeat about the market, saying falling US and European inventories along with still-robust demand from Asia means oil prices should hold up near-term.
Oil prices were also supported by Saudi Arabia's pledge to cap its exports earlier this week.
OPEC and non-OPEC producers reached an agreement in December 2016 to curtail oil output jointly and ease a global glut after more than two years of low prices. WTI-Brent spread was stable on Jul-2017.More news: What is CTE, the disease caused by head trauma?
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Supply interruptions from Venezuela also boosted oil.
The US Energy Information Administration reported that the oil reserves in the United States decreased in 7.2 million barrels last week, exceeding the prediction of a 2.6-million-barrel decrease. The committee did not back capping Libyan output as it said its production was unlikely to exceed 1 million bpd in the near future compared to its capacity of 1.4 million-1.6 million bpd before unrest erupted in 2011 and plunged the nation into chaos.
Brimming U.S. crude supplies have challenged production cuts to prop up prices led by the Organization of the Petroleum Exporting Countries, meaning weekly U.S. inventory data is closely watched.
But despite the move to the top of crude's recent trading range, Essner and other analysts expect prices to remain stuck between $42 and $55 a barrel.
Prices were up 8.6% this week, hitting a 2-month peak. As a result of the previous working week, the number of drilling rigs in the US fell by 2, or 0.21 percent, to 950 units.