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Oil prices rise, climbing from five-month lows

Oil prices rose more than 1% on Friday, climbing further away from five-month lows hit earlier in the week after a report that Washington could postpone trade tariffs on Mexico and amid signs that OPEC and other producers may extend their supply cuts.

Brent crude futures were up 79 cents, or 1.3%, at $62.46 a barrel. They gained 1.7% on Thursday.

U.S. West Texas Intermediate (WTI) crude futures were up 65 cents, or 1.2%, at $53.24 per barrel. They finished the previous session at 1.8% higher.

Brent and WTI on Wednesday hit their lowest marks since mid-January at $59.45 and $50.60, respectively, after U.S. crude output reached a record high and stockpiles climbed to their highest since July 2017.

Despite the two-day bounce, Brent is heading for the third week of decline, down more than 3%. WTI is on track for a drop of about 0.5%.

Prices had been supported by supply curbs by the Organization of the Petroleum Exporting Countries (OPEC) and producing allies, including Russia. Supply has also been limited by U.S. sanctions on oil exports from Iran and Venezuela.

Also potentially keeping a lid on prices is the unrelenting rise in U.S. crude production.

U.S. oil output rose to a record 12.4 million barrels per day (bpd) in the week to May 31, the Energy Information Administration said on Wednesday, an increase of 1.63 million bpd since May 2018.

U.S. crude oil inventories also surged by 6.8 million barrels over the same week, to 483.26 million barrels, their highest levels since July 2017.