Investing.com - Crude oil futures rallied over 3% on Friday, as investors continued to seek cheap valuations aver the commodity plunged nearly 9% on Wednesday and as markets eyed upcoming U.S. employment data for further indications on the strength of the local job market.
On the New York Mercantile Exchange, U.S. crude oil for delivery in March traded $1.79 or 3.56% higher to $52.28 a barrel during European early afternoon trade.
Prices surged $2.03 or 4.19% on Thursday to settle at $50.48.
Futures were likely to find support at $47.36, Thursday's low and resistance at $54.24, the high from February 3.
Oil prices recovered after the U.S. Energy Information Administration said on Wednesday that U.S. crude oil inventories rose by 6.3 million barrels last week to 413.1 million, the most in records dating back to August 1982.
Capital expenditure cuts by major oil companies combined with a sharp reduction in U.S. rig counts helped support prices amid hopes it will alleviate a glut in global supplies.
In addition, concerns over weakening output from Libya and expectations for stronger U.S. jobs data later on Friday also lent support to prices.
Oil prices have fallen sharply in recent months as the Organization of Petroleum Exporting Countries resisted calls to cut output, while the U.S. pumped at the fastest pace in more than three decades, creating a glut in global supplies.
Meanwhile, investors continued to follow developments in Greece. On Thursday, German Finance Minister Wolfgang Schauble said Athens' financial difficulties were the result of domestic problems, but that Germany would do all in its power to help.
Schauble was speaking at a joint press conference with his Greek counterpart Yanis Varoufakis in Berlin on Thursday.
The comments came after the European Central Bank said it would no longer accept Greek bonds as collateral for lending, shifting the burden on to Greece’s central bank to provide additional liquidity for its lenders and increasing pressure on Athens.
Elsewhere, on the ICE Futures Exchange in London, Brent oil for March delivery gained $1.89, or 3.34%, to hit $58.46 a barrel, with the spread between the Brent and the WTI crude contracts stranding at $6.18.