U.S. crude futures were on track for a gain of nearly 9pc for the week, the biggest percentage gain since October. Brent was on track for 6pc weekly gain.
The next resistance will be at $57.72, a break above which could lead to a gain to $58.55. A pennant suggests a target of $58.30 which falls within the range of $57.72-$58.55.
The American Petroleum Institute reported US crude oil inventories fell by 4.3 million barrels in the week to Jan. 29, compared with analysts' expectations in a Reuters poll for a build of 446,000 barrels.
The blue-chip FTSE 100 index rose 0.8pc, with financial stocks, mainly HSBC Holdings and Barclays PLC leading the gains. The mid-cap index added 1.5pc.
The consolidation from the Jan. 13 high of $54.72 seems to have been shaped into a wedge, which has been confirmed as a bullish continuation pattern. It suggests a target around $58.01.
U.S. oil and gas drillers are gearing up for a pick-up in demand. As higher prices make new wells profitable again, they added rigs for a sixth month in a row in January.
The monthly averages for January for Dubai and Oman as quoted by Platts are indicated in the table. Middle East producers set their monthly official selling prices (OSPs) at premiums or discount to these averages.