Oil prices are currently at fresh two-month highs and on track to post the strongest weekly gains, on signs that crude oversupply is easing.

According to oilfield services firm, Baker Hughes, the number of oil rigs operating in the United States rose by two to a total of 766 last week.

Traders’ investors were expecting the update on U.S. rig count, in order to assess any sign of a slowdown in drilling activity.

Brent Crude futures were up 92 cents, or 1.8 per cent, at 52 dollars 41 cents a barrel, while U.S. west Texas intermediate crude futures rose 61 cents, or 1.2 per cent, to 49 dollars 65 cents a barrel by 5:00pm. (Channels TV)