The spread was firmly in contango between June 1 and Wednesday. "And the persistent strength in the global economy is finally registering".
The prompt November/December spread for the European benchmark contract has been mostly strongly backwardated since mid-August.
Futures rose 5.1 percent in the past week in NY, settling just below the $50-a-barrel threshold that's kept the industry in thrall.
"The IEA (International Energy Agency) revising up its 2017 global oil demand growth forecast, together with persistent weakness in the US dollar index, has prompted bullish sentiment in the oil market".
"Increased estimates of oil demand by IEA and OPEC, driven by China and the U.S., continue to reverberate through the market", ANZ Research analysts said in a note Friday.
That was followed by the International Energy Agency report in 2017 by 100,000 barrels a day (bpd) to 1.6m bpd, or 1.7%.
Data from both IEA and OPEC therefore suggest global oil demand will climb this year by the most since 2015, amid stronger-than-expected consumption in Europe and the US.
BA flight in Paris gets extra security checks after threat
The incident comes days after a bomb was detonated on a District Line Tube train at Parsons Green station in West London. Anderson told CNN they had no new updates from officials and passengers are re-boarding the aircraft.
Moreover, support for prices has also emerged from other factors, including a drop in OPEC production in August, a larger-than-expected draw in United States product draws in the wake of severe hurricanes and increased optimism regarding the possible extension of OPEC-led cuts beyond March 2018.
Gasoline inventories, according to the EIA fell last week, by 8.4 million barrels, generally in tune with API's estimate of a 7.896-million-barrel decline-and the largest gasoline draw on record.
"Based on recent bets made by investors, expectations are that markets are tightening and that prices will rise, albeit very modestly", the agency said.
USA and global benchmarks have risen every day this week, with the latest North Korea test providing a handy reason for oil investors to pull back a touch.
Oil prices, which have recently received some support from reports about discussions of another possible extension of the OPEC production cut deal, remained stable following the release of the EIA report, with WTI trading at US$48.75 a barrel and Brent crude at US$54.62 a barrel.
Latest data from Baker Hughes showed the number of active U.S. oil rigs falling by 3 in the week ended September 8 to 756.
"The Saudis have really been working the crowd, pressing Libya, pressing Nigeria", Mr. Kilduff said.