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 The dollar was down 0.66 percent against a basket of currencies,
making dollar-traded commodities such as crude oil more attractive
to holders of other currencies.
"A slightly weaker dollar is helping crude prices today," said
Michael Hewson, chief markets analyst at CMC Markets.
"We've still got a significant supply glut. Overall I think the
buyers are starting to shift a little bit lower."
Unrest in the Middle East also supported prices. Iraqi security
forces and mainly Shi'ite militia exchanged fire with Islamic State
fighters in Tikrit on Thursday, a day after pushing into Saddam
Hussein's home city in their biggest offensive yet against the
militants.
Brent for April delivery <LCOc1> was up 70 cents at $58.24 at 6.50
a.m. EDT, after gaining $1.15 during the previous session in a
rebound from a one-month low.
West Texas Intermediate <CLc1> climbed 31 cents to $48.48 a barrel,
after closing the previous session down 12 cents.
The April contracts for Brent and WTI expire next week.
"When contracts expire there is more uncertainty and volatility
associated with oil. For investors speculating, directionally WTI
seems to be facing more pressure heading down. Brent will move
upwards," said Victor Shum, vice president of IHS Energy in
Singapore.
Brent's premium to U.S. crude widened to almost $10 a barrel, after
dropping below $8 on Tuesday, its narrowest in a month.
Bearish sentiment toward WTI caused by a build in U.S. crude stocks
helped to widen the spread, limiting the gains in WTI, said Yusuke
Seta, a commodity sales manager at Tokyo's Newedge Japan.
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U.S. crude inventories rose for the ninth straight week, gaining 4.5
million barrels last week to 448.9 million, U.S. Department of
Energy data showed.
That was the highest level at this time of year in more than 80
years.
Any price gains could be short-lived as oil stocks are forecast to
rise further due to refinery maintenance, and the dollar could
continue its recent strengthening against the euro, analysts said.
"There are still no signs that U.S. crude oil production might be
waning – output grew last week to just shy of 9.4 million barrels
per day, putting it at its highest level in 42 years," analysts at
Germany's Commerzbank said in a note.
(Additional reporting by Keith Wallis in Singapore; Editing by Dale
Hudson)
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