LONDON: Global oil prices bounced back on Friday from eight-month lows as investors fished for bargain crude while anticipating strong US economic data later in the day.
New York's main contract West Texas Intermediate for February delivery added 38 cents to $92.71 a barrel.
Brent North crude gained 64 cents to stand at $107.79 a barrel in early afternoon London deals.
Crude futures in New York had dived on Thursday to the lowest level since the beginning of May, weighed down by high US crude and product stockpiles that suggested supplies continue to outpace demand.
Later on Friday, markets will digest the crucial non-farm payroll figures for December in the United States, which is the world's top crude consuming nation.
"Crude oil prices rebounded strongly on Friday as risk appetite increased amid expectations of strong US non-farm payrolls data, following the recent robust employment figures from the US," said analyst Myrto Sokou at the Sucden Financial brokerage in London.
"We have received fairly strong US economic data in the last few trading sessions, verifying a strong recovery of the US economy that could mean a sooner rather than later end of the quantitative easing (QE) programme."
The US Federal Reserve will start cutting its vast $85-billion-a-month QE stimulus programme this month by $10 billion, in a sign of confidence in the nation's economic recovery.
Friday's data will be closely monitored to see if it will give the central bank more ammunition to further cut its stimulus.
A cold snap sweeping across North America has meanwhile boosted demand for heating fuel, and helped push oil prices higher.
"The surge in demand for heating fuels will inevitably raise the demand for crude oil, which is used as a feedstock for heating fuels. As such, crude oil prices are likely to be well supported," Phillip Futures said in a market commentary.
Sanjeev Gupta, head of the Asia-Pacific oil and gas practice at consultancy firm Ernst and Young, said however that high US inventories "continued to pressure prices lower".
Data released on Wednesday showed that US weekly crude oil inventories fell by 2.7 million barrels, exceeding analysts' predictions. Gasoline stockpiles were up.
Investors were also monitoring developments in oil-producing South Sudan after the government's peace talks with rebels reached a deadlock.
The country's oil production has dropped by about a fifth because of the fighting, depriving the impoverished nation of a key source of foreign currency.
Michael McCarthy, chief market strategist at CMC market in Sydney, said the intensifying conflict is "probably insignificant" in terms of oil prices in the global market.
"But it's a reminder for the potential of disruption in oil supplies," he told AFP.
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