Mubasher: Oil futures rallied on Friday, recovering from five-month lows recorded earlier in the week, amid reports that Washington could delay import levies on Mexico, Reuters reported.

The surge was also fanned by signs that the Organization of the Petroleum Exporting Countries (OPEC) and allied producers could keep their supply restraints in place.

By 8:44 am GMT, US Nymex crude futures rose by 1.65% to $53.46 per barrel (pb), having settled 1.8% higher on Thursday, while global benchmark Brent futures climbed by 1.78% to $62.77 pb after gaining 1.7% in the preceding session.

Both contracts on Wednesday recorded their lowest levels since mid-January at $50.60 pb and $59.45 pb, after US crude production broke another record, and inventories built up to their highest level since July 2017.

Placed in a bearish territory, Nymex is heading to record a weekly decline of around 0.5%, while Brent is on course to mark its third weekly drop, down more than 3%.

Oil prices surged after US equities climbed on Thursday after a Bloomberg report that the US weigh a delay to tariffs on Mexico as negotiations proceeded in Washington.

However, overall outlook for oil remained gloomy amid new signs of sluggish global economic growth, as trade conflict between the US and China intensified.

Oil market remained supported by the output-trimming deal in place between OPEC members and their partners, including Russia an alliance known as OPEC+, while US sanctions against crude shipments from Iran and Venezuela limited supply.

A surge in US crude production capped gains for oil, with the output hitting a record of 12.4 million barrels per day (bpd) in the week ended 31 May, a year-on-year leap of 1.63 million bpd.