The market was also supported by China's optimism that its domestic economy was recovering and official promises of more swift stimulus action when required. China is the world's second-largest oil consumer.

US crude was up 69 cents at $44.30 a barrel by 1020 GMT after rising as high as $44.61, while London Brent crude advanced 43 cents to $44.07 a barrel.

Markets will be watching for the February US non-farm payrolls data due later in the session, which will probably show unemployment surging to a 25-year high in the world's top oil consumer.

"Today, traders will turn their attention to the non-farm payroll report which in case of a negative surprise may pose an obstacle to further gains," said Marius Paun, commodities analyst at ODL Securities.

Friday's key non-farm payrolls report is expected to show the economy shed 648,000 jobs in February, while the unemployment rate is expected to rise to a 25-year high of 7.9 per cent, according to a Reuters poll.

The Labor Department is scheduled to release its payrolls report on Friday at 1330 GMT. The US dollar weakened, supporting crude.

Asian stocks slid following losses on Wall Street due to a warning from General Motors it could go bankrupt and uncertainty about the fate of the banking sector. European stocks made early losses.

Top Chinese officials said on Friday that substantial fiscal and monetary stimulus was breathing life back into the world's third-biggest economy hit by crumbling exports, suggesting Beijing saw no need to boost the existing investment plan of nearly $600 billion.

Oil has traded in a band from around $33 to $50 since mid-December, pressured by slumping demand due to the economic downturn. Expectations OPEC might cut production again when it meets on March 15 have added support.

OPEC has agreed to cut production by 4.2 million barrels per day since September, and a Reuters survey found that members have met 81 per cent of their output reductions as of last month.

Angola, which holds the presidency of the 12-member group, will not advocate further production cuts when the group meets, sources said, but Venezuela, Algeria and Libya have raised the possibility of a further cut.