Oil prices rose more than one per cent on Friday, adding to gains in the previous session, after OPEC producers and allies promised to meet commitments on cutting supply and two major oil traders said demand was recovering well.
Brent crude LCOc1 futures rose 61 cents, or 1.5 per cent, to $42.12 a barrel by 0639 GMT, the highest in more than a week.
U.S. West Texas Intermediate (WTI) crude CLc1 futures climbed 60 cents, or 1.5 per cent, to $39.44 a barrel.
Both contracts rose about two per cent on Thursday and are heading for weekly gains of nearly nine per cent.
Plans by Iraq and Kazakhstan to make up for overproduction in May on their supply cut commitments supported the market.
Fears about dwindling storage capacity had sent the market into steep contango, as wide as $5, as coronavirus lockdowns hit near-term demand and Saudi Arabia and Russia glutted the market with crude in April.
Comments from global oil traders Vitol and Trafigura on a rebound in oil demand in June, reported by Bloomberg, also buoyed the market, ANZ said.
Traders shrugged off another build in U.S. crude inventories to a new record.
Crude stocks USOILC=ECI rose by 1.2 million barrels last week to 539.3 million barrels, compared with expectations from a Reuters poll for a decline of 152,000 barrels.