Brent crude was on track for its third weekly gain on Friday, supported by an optimistic report from the International Energy Agency.

Still, analysts cautioned that a large glut of oil remained, with Goldman Sachs warning that U.S. crude could saturate storage in the coming months.

U.S. crude futures were trading at 38.64 dollars a barrel, up 80 cents from their last close, having hit a 2016 high of 38.96 dollars earlier in the day.

Brent crude futures were at 40.65 dollars a barrel, up 60 cents, and on track for their third weekly gain in a row.

“We expect a decision next week on imposing sanctions on these three,” said one EU diplomat.

He stressed that EU foreign ministers are not expected to decide on Monday but that a decision could come later in the week.

(Reuters/NAN)