Oil prices higher

Reuters

Tokyo

US oil futures touched new highs for 2016 on Friday, adding to strong gains the previous session as optimism grew that major producers would strike a deal to freeze output, while a more benign interest rate environment also supported prices.

U.S. crude was up 5 cents at $40.25 barrel at 0211 GMT, after rising as far as $40.55 - its highest so far this year. But the contract also fell to as low as $39.96 earlier on Friday.

On Thursday, U.S. crude rose 4.5 percent to close at $40.20, after climbing as high as $40.36.  Brent crude's front-month contract was up 1 cent at $41.55. It finished up $1.21 at $41.54 a barrel on Thursday, after earlier reaching the year's peak of $41.60, a level that was matched earlier on Friday.

Oil prices have surged more than 50 percent from 12-year lows since the Organization of the Petroleum Exporting Countries floated the idea of a production freeze, boosting Brent from about $27 a barrel and U.S. crude from around $26.