Oil prices rallied again today after a one-day pause, helped by strong US jobs data and technical buying after crude prices breached resistance levels on charts.
Speculation that the number of US rigs drilling for oil fell this week for a 11th straight week was buoying prices, traders said.
Brent futures, the global benchmark for crude, were up $1.45 at $38.52 a barrel by 5.36pm Irish time.
US crude's West Texas Intermediate (WTI) futures were up $1.15 at $35.72.
Oil prices were mixed yesterday after rallying for the first three days of the week. Brent was on track to rise for a second straight week and US crude a third straight.
Both were up about 10% from a week ago.
Charts for Brent and WTI showed Relative Strength Index (RSI) above 60, heading toward the overbought level of 70.
Crude prices have spiked nearly 40% from 12-year lows hit less than two months ago.
"Despite bearish inventory data, the market is looking for green shoots and reasons to head higher," said Michael Tran, director of energy strategy at RBC Capital Markets in New York.
"We have seen another 12 million barrels arrive in the Gulf of Mexico this week from the Arab Gulf, and another 11.4 million from Central and Latin America," said Matthew Smith, who tracks crude cargoes for New York-based Clipper Data.
"All these while we continue to see a backlog of cargoes in the Gulf of Mexico, more than double volumes we usually see," he added.
US crude inventories rose last week to a record high of 517.98 million barrels even as output fell for a sixth straight week, the US Energy Information Administration said.
Today, oil rose after data from the Labour Department showed a surge in US jobs growth for February.
The rally intensified after WTI breached $35 technical resistance.
David Thompson at Washington-based commodities broker Powerhouse said WTI had to settle above $35 for the run-up to sustain.
"If the bulls fail to muster that strength, I suspect there are many potential sellers hoping to drive it back down," Mr Thompson said.
"Friday closes bear extra weight because traders must live with their choices over the weekend."
