Oil prices rose more than $2 a barrel on Friday, drawing support from improved U.S. consumer confidence and further evidence of record levels of compliance by OPEC with its agreed output cuts.
U.S. crude futures jumped $2.28 to $53.40 a barrel by 2:13 p.m. EDT, after hitting $53.65, the highest since April 3. Brent crude rose $2.08 to $52.88.
The gains came after a survey showed consumers in the world's top energy user felt more confident about the economy in April than at any time since the September failure of Lehman Brothers.
This should push this market higher, said Nauman Barakat, senior vice president at Macquarie Futures USA.
Equity markets also gained, continuing a strong trend in recent weeks of commodity markets riding in tandem with Wall Street and other global shares.
A key European equities benchmark, the FTSEurofirst 300 <.FTEU3> index, posted its biggest-ever monthly gain in April led by banks.
Adding support, a Reuters survey showed the Organization of the Petroleum Exporting Countries (OPEC) reduced supply in April, implementing 84 percent of its agreed output cut. The compliance rate is a record high, while the average is around 60 percent.
OPEC has agreed to cut some 4.2 million barrels per day of output since September in an effort to counter slumping demand and a $100 collapse in prices.
Still, weak oil demand in the near term and rising crude inventories in the United States -- now at their highest since 1990 -- have slowed the pace.
We remain unconvinced oil prices can maintain the current levels given ballooning oil inventories and lower open interest on the futures contract, Harry Tchilinguirian, senior oil analyst at BNP Paribas, said.
Traders were also still cautious about the economic impact of the current flu outbreak.
(Additional reporting by Richard Valdmanis in New York; Alex Lawler and Fayen Wong in Perth; Editing by Marguerita Choy)