Oil prices just had their best two-week run in 17 years finishing up 2.2 per cent to $57.8 per barrel

Jessica Morris
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Oil just had its best two-week run since 1997 (Source: Getty)

Oil prices roared towards big weekly gains that have not been seen in years on Friday, as investors shrugged off concerns over a global supply glut, and instead focused on future levels of production.

Brent crude, the global benchmark, posted a nine per cent gain for the week, or the biggest since 2011. Prices were up 19 per cent over two weeks, which was the largest increase since 1998.

Brent crude finished up 2.2 per cent to $57.8 per barrel, while US crude closed up 2.4 per cent to $51.69 per barrel on Friday.

It was buoyed by the latest rig count data showing another month of decline in the number of rigs drilling for oil, which could be taken as a signal that we're nearing a floor for recent oil price declines.

Heavy fighting across oil producer Libya, and fantastic employment data out of the United States suggesting the world's largest economy is doing better than previously thought also helped oil.

There were whispers that oil prices - which have tumbled around 50 per cent since July last year - are finally starting to bottom out with squeezed producers curtailing expenditure by scaling back drilling.

However, the gains came amid choppy trading with daily prices sometimes swinging up to nine per cent, as investors digested mixed signals about future oil supplies.

Oil industry analysts continued to warn that the world is still facing an oversupply problem, as oil production continues to outpace global demand for the black stuff.

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