"Crude continues to extend gains as early reports from Beijing, regarding trade negotiations, are fuelling optimism around successful trade talks between the U.S. and China, " said Stephen Innes, head of trading for Asia-Pacific at futures brokerage Oanda in Singapore.
Asian markets are mostly higher as investors cheer more...
The surge in USA production runs counter to efforts led by the Organization of the Petroleum Exporting Countries to cut supply and rein in an emerging glut. Australia's S&P ASX 200 rebounded to gain 0.3 percent to 5,795.30. The S&P 500 index gained 0.5 percent to 2,596.64. Shares fell in Taiwan but rose in Singapore, Indonesia and the Philippines.
The three-day trade negotiations between US and Chinese officials at Beijing concluded on Wednesday, with no significant breakthroughs. The Dow Jones Industrial Average added 0.5 percent to 24,001.92 and the Nasdaq composite was up 0.4 percent at 6,986.07.
The meetings in China were the first face-to-face talks since Trump and Chinese President Xi Jinping met in Buenos Aires in December and agreed a 90-day truce in a trade war that has disrupted the flow of hundreds of billions of dollars of goods.
Oil prices continued to rise during the week ending January 11, with the price of West Texas Intermediate (WTI) for February delivery increasing by 7.6 percent and Brent crude for March delivery increasing by 6.0 percent. The Russell 2000 index of smaller company stocks rose 0.9 percent to 1,438.81.
State newspaper China Daily said on Wednesday that Beijing is keen to put an end to its trade dispute with the United States, but that it will not make any "unreasonable concessions" and that any agreement must involve compromise on both sides.
ANALYST'S TAKE: "While there was agreement on less thorny issues such as agriculture and energy, US demands for verification and enforceable targets on intellectual property rights, transfer of technologies and non-tariff barriers may not be that easily addressed", DBS Group Research strategists Eugene Leow and Neel Gopalakrishnan said in a commentary.
Wagers on increasing prices climbed the most in a month, reversing course from last week.
West Texas Intermediate slipped 0.5% after a rally on Wednesday brought crude's rebound from an 18-month low in December to 23%.
Fears that Nigeria's 2019 budget may suffer huge revenue short fall may be abetted as the prices of crude oil in the global market rebounded on Wednesday, selling at the $60 per barrel benchmark set for the budget by the Federal Government.
Morgan Stanley now expects Brent to average $61 a barrel this year, down from a previous estimate of $69 a barrel, and USA crude to average $54 per barrel, against a prior forecast of $60.
CURRENCIES: The euro was up 0.3 percent at $1.1529 while the dollar fell 0.1 percent to 108.27 yen.