Oil prices hit a fresh six-month high, buoyed by falling US stockpiles, amid signs the US economy is not shrinking as fast as people thought.

US light crude for July delivery climbed $1.23 to close Friday trading at $66.31 a barrel.

A Commerce Department report on first quarter GDP showed a 5.7% contraction - revised down from an initial 6.1% fall.

On Thursday, the Energy Information Administration said US oil supplies had dropped for the third week in a row.

Also on Thursday, Opec oil ministers decided to keep output unchanged, amid optimism that prices are set to rise. The Saudi oil minister predicted prices will reach $75 this year.

“We’ve got a lot more optimism about the economic outlook than we did,” said Toby Hassall, an analyst with Commodity Warrants Australia in Sydney.

“The market is factoring in a recovery in demand by the end of the year.”