REUTERS

Oil prices climbed on Friday to their highest levels in a year, extending a run of strong gains on signs of economic growth in the United States and a continued commitment by producers to hold back crude supply.

Brent crude futures climbed 40 cents, or 0.7%, to $59.24 a barrel by 0428 GMT, after hitting a high of $59.41, its highest since Feb. 20 last year. Brent is on track to rise 6% this week, as reported by Reuters.

Read alsoIMF mission continues its work on Ukraine SBA reviewU.S. West Texas Intermediate (WTI) crude futures jumped 42 cents, or 0.8%, to $56.65 a barrel, after touching a high of $56.84, its top since Jan. 22 last year. The benchmark contract is on track for a weekly gain of nearly 9%, which would be its biggest weekly gain since October.

In a sign of tightening crude oil supplies, the six-month backwardation in Brent and WTI futures - when the price for prompt delivery is higher than the price for future delivery - jumped to 13-month highs for both contracts at $2.41 and $2.30 a barrel, respectively.

Markets were encouraged by stronger-than-expected orders for U.S. goods in December, pointing to strength in manufacturing, and hopes for swift approval by lawmakers of President Joe Biden’s proposed $1.9 trillion coronavirus aid plan.

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