Oil again flirted with $60 on Friday, briefly rising above the psychologically important level for the first time in a month on more signs of falling OPEC exports and problems at a U.S. oilfield, Reuters reports.
U.S. crude oil was up 19 cents to $59.90 a barrel by 0904 GMT, after hitting the highest since January 3. London Brent crude was up nine cents to $59.12.
OPEC's exports in January were down 200,000 barrels per day (bpd) from December, shipping data from Lloyd's Marine Intelligence Unit showed, bringing the group closer to its pledged supply cut of 1.2 million bpd from November.
The group's exports are expected to edge even lower in February, when OPEC planned to cut another 500,000 bpd, oil consultancy Oil Movements said in a separate report.
Adding to the rally was a force majeure on oil and gas supplies by independent producer Occidental Petroleum from its field in Elk Hills, California, after it shut 95 percent of its 120,000 barrels of oil equivalent a day following a fire.
"With the projected fall in OPEC supplies in the short term, the market has been gaining momentum. It is possible that the market is factoring in (Occidental)," said Tetsu Emori, chief strategist at Mitsui Bussan Futures Ltd.
Traders said increased tension between the United States and OPEC producer Iran was adding to buying support. Iran's Supreme Leader Ayatollah Ali Khamenei said on Thursday the Islamic Republic would target U.S. interests worldwide if it came under attack over its nuclear program.
Iran, the world's fourth-largest oil exporter, and the United States are at odds over Tehran's nuclear program, which Washington says is being channeled into bomb-building, a charge Tehran denies.