This, after Washington imposed further sanctions to curb Iranian oil trade and as some Organisation of the Petroleum Exporting Countries (OPEC) producers pledged more output cuts to compensate for pumping above-agreed quotas.

Brent crude futures rose 0.8%, to $66.40 a barrel by 05h21 CAT, and United States (US). West Texas Intermediate crude was at $63.13 a barrel, up 1.1%.

Both benchmarks settled 2% higher on Wednesday at their highest levels since April 3 and are on track for their first weekly rise in three. Thursday is the last settlement day of the week ahead of the Good Friday and Easter holidays.

"I think the rally has a couple of factors behind it, shorts covering, the weaker USD which makes crude oil cheaper to buy, and the US pressure on Iran," IG Market Analyst Tony Sycamore said.

He added that WTI could rise back to $65-$67 a barrel but may struggle with further gains.

"If we assume that US growth is going to be flat at best for the next two quarters and Chinese GDP is set to slow to somewhere between the 3%-4% band, it's not good for crude oil," Sycamore said.

President Donald Trump's administration issued new sanctions targeting Iran's oil exports on Wednesday, including against a China-based "teapot" oil refinery, ramping up pressure on Tehran amid talks on the country's escalating nuclear programme.

--Reuters--