Brent crude futures gained 16 cents, or 0.20%, to $78.30 a barrel by 0357 GMT, while West Texas Intermediate U.S. crude rose 35 cents, or 0.48%, to $73.69 a barrel.
"Worries over reduced supply from Iraq's Kurdistan region and a relief in financial markets worried about the banking sector turmoil continued to boost investors' risk appetite," said Satoru Yoshida, a commodity analyst with Rakuten Securities.
"Expectations that the U.S. Federal Reserve will keep a cautious stance in raising interest rates because of banking stress also increased hopes for a stronger global economy and oil demand," Yoshida said, predicting the bullish tone would continue this week.
Oil prices rallied this week after exports of 450,000 barrels per day (bpd) from Iraq's semi-autonomous northern Kurdistan region were halted, following an arbitration decision that confirmed Baghdad's consent was needed to ship the oil.
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