Oil held close to $58 as a cold snap in top consumer the United States increased demand for heating fuel and the latest OPEC production cuts took effect, Reuters reports.
U.S. oil had jumped $1.17 the previous session, taking gains for the week to over 4 percent.
After an initial retreat on Thursday, the market resumed its advance, with U.S. crude up six cents at $58.20 a barrel by 1134 GMT and London Brent up 12 cents at $57.52.
Prices have rebounded from a 20-month low of $49.90 on January 18 as cold weather -- albeit late in the northern winter season -- helped to draw down U.S. distillate fuel stocks for the first time in nearly two months.
"We are getting some (investment) funds coming back now as there is enough strength in the market," said Gerard Burg, an analyst at National Australia Bank.
Data published on Wednesday showed U.S. heating oil stocks dropped 3.4 million barrels last week. The National Weather Service has forecast below normal temperatures in the next two weeks, suggesting demand will stay strong.
OPEC's latest production cut, of 500,000 barrels per day, took effect on Thursday, tightening supplies to the 85 million bpd global oil market.