Oil climbs, but still set for weekly loss

Oil prices rose on Friday but were still on track for a week of losses due to concerns about oversupply as signs of rising US output were compounded by doubts that Russia would support an OPEC deal to extend curbs on production.

Benchmark Brent crude oil LCOc1 was up 66 cents at $62.04 a barrel by 1400 GMT, recovering some ground after five sessions of losses.

US light crude hit a three-day high, rising more than $1 before easing back to $56.08, 94 cents up on the day.

“An end-of-week rebound is helping the energy complex claw back some of its recent losses, though both crude markers are still on track for their first weekly decline in six weeks,” oil brokerage PVM said on Friday.

A 5,000-barrel oil leak in South Dakota – that led TransCanada Corp to shut part of its Keystone pipeline system on Thursday – added to the bullish tone, PVM said.

But prices were still on track to fall between 2% and 3% since the end of last week as fears of oversupply in the United States weighed.

Crude oil production in the US hit a record 9.65 million barrels per day (bpd) this month, meaning the output has risen by almost 15% since mid-2016.

The International Energy Agency said on Thursday that the United States would account for 80% of the global increase in oil production over the next 10 years.