Oil rises on Saudi pledge to cut output, weak dollar By

Moscow offers Saudis stake in Arctic energy project

Moscow offers Saudis stake in Arctic energy project

Brent crude was up 48 cents, or 0.73 percent, at $64.81 per barrel by 1:53 p.m. EST (1853 GMT).

USA producers aren't going to run out of oil any time soon either - Wood Mackenzie says that producers in the West Texas region of the Permian Basin can continue to grow production by at least another 1 million barrels per day for the next 15 years. The global benchmark ended the week up more than 3 percent, partially recovering from a decline of more than 8 percent last week.

The premium of Brent over WTI dropped to almost the lowest in six months in volatile and mixed oil trade on Thursday, in which a weaker dollar and a Saudi pledge to more than overcomply with the production cuts supported prices, while concerns of oversupply from US shale and increased USA inventories dragged prices down.

"After such a sharp drop that we saw prior to Wednesday, perhaps a recovery was due", said Tony Headrick, an analyst at CHS Hedging LLC.

Speculators also cut net long U.S. crude futures and options positions in the week to February 13 by the most since late August, the U.S. Commodity Futures Trading Commission (CFTC) said. The number of rigs operating in US oil fields added by seven to a total of 798 rigs for the fourth consecutive weekly increase, oilfield service firm Baker Hughes said in its weekly report on Friday.

This week's recovery has been supported by a strong equity market and a weak dollar.

The dollar slipped to a three-year low on Friday, extending overnight losses and pointing towards its biggest weekly loss in two years.

A weaker greenback often boosts prices for dollar-denominated commodities. "The weaker dollar has been extremely supportive to crude", said Bill Baruch of Blue Line Futures.

The deal to cut oil output by 1.8 million barrels a day (bpd) was adopted last winter by OPEC, Russia and nine other global producers. The arrangement expires at the end of 2018.

In a closely-watched monthly report published by the International Energy Agency (IEA) on Tuesday, the Paris-based organization said a rise in global oil production - led by the US - was on track to outpace growth in demand this year.

USA shale producers are churning out crude oil at such a relentless pace that the country will soon become the most influential player in the energy market, according to an analyst.

The rising USA crude output, however, continued to weigh on the market.

Also underpinning the markets is the news that Saudi Arabia and Russian Federation plan to draft an agreement on a long-term alliance by the end of the year, United Arab Emirates energy minister Suhail al-Mazroui said on Thursday.

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