Russia's crude oil production climbed to a record in 2017 even as it joined forces with the Organisation of the Petroleum Exporting Countries (Opec) to clear a global glut and lift prices.
Brent Crude futures rose 41c to 66.57 bbl.
USA commercial crude oil inventories have fallen by nearly 20 per cent from their historic highs last March, to 431.9 million barrels.
WTI prices were supported by data from the US Energy Information Administration late Thursday showing domestic Crude Oil production declined last week to 9.75-M BPD from 9.79-M BPD the prior week.
"Growing unrest in Iran set the table for a bullish start to 2018", the US -based Schork Report said in a note to clients on Tuesday.
U.S. West Texas Intermediate (WTI) crude futures settled at $60.42, the highest close since June 2015.
Supermoon to usher in the new year
EST (0100 GMT), the online observatory Slooh.com will offer a live webcast from its remotely operated telescopes around the world. It appears a bit brighter than a standard full moon, although weather conditions play a bigger role in its visibility.
Chris Johnson's Forecast | Arctic air and risky wind chills arrive
Feel like temps once again dip into the negatives Monday night as actual lows plunge into the single digits. As we close the chapter on 2017 and welcome in the new year, we'll do so on an extremely cold note.
Pulwama Encounter: Four CRPF men, two militants killed
With this, the number of CRPF who were killed in the encounter has reached five including the one who suffered a heart attack. Traffic on the Srinagar-Jammu Highway, passing through Pulwama , was not affected, a traffic police official said.
Worldwide benchmark Brent Crude futures also rose, supported by ongoing supply cuts by top producers OPEC and Russian Federation as well as strong demand from China.
The Kremlin's deal with Opec has been extended until the end of 2018, a sign that allies are committed to cutting stockpiles to boost prices.
Some analysts think Friday's crude gains will evaporate sooner than later: "The current highs are unsustainable in the short-to-medium term, with prices likely to head back below $60 once we get past January", stated JBC Energy GmbH.
Monthly EIA data released on Friday showed US crude production hit a 46-year high in October, but the country's oil exports and demand also rose.
"Independent E&P firms will be particularly attractive to larger independents and integrated oil companies", Moody's said in its 2018 credit trends report. If the figure is not revised next month, it would be the highest monthly level since May 1971.