Brent's Relative Strength Index (RSI) dropped to 27.794 on Thursday from more than 29 on Wednesday, after slipping Friday below the 30 threshold that indicates an oversold condition.
U.S. crude rose 27 cents to settle at $97.08, stemming a six-day losing streak that had reduced the front-montb June crude's value by 8.8 percent.
U.S. crude's RSI rose to 31.459 on Thursday, after the stretch of losses put it slightly below the oversold benchmark of 30 in late trading on Wednesday. U.S. crude's RSI stood at 54.392 on May 2, when the most recent extended selloff began.
Brent's premium against U.S. crude narrowed to $15.65 at the close, after rising earlier to $16.85, the widest since April 16. On that day, owners of the U.S. Seaway Pipeline announced they would reverse its flow ahead of schedule, a move seen easing the glut in U.S. Midwest crude inventories.
The premium had risen five straight days, hitting $16.39 on Wednesday, before narrowing on Thursday.
"There's profit-taking going on in the spreads," said Mark Anderle, broker at TAC Energy in Dallas, Texas.
Seaway will carry 150,000 bpd of crude from Cushing Oklahoma, the delivery hub of the U.S. crude contract, to refineries in the U.S. Gulf Coast. The first crude was scheduled to go into the pipeline by next week.
The Brent spread against U.S. crude has been widening despite the Seaway's imminent reversal as crude has continued to rise at Cushing, hitting another record high last week at the NYMEX hub.
Trading volumes were slightly lower, with Brent trading 2 percent lower than its 30-day average and U.S. crude dealings down 9 percent from its 30-day average, according to Reuters data. (Additional reporting by Robert Gibbons in New York, Julia Payne and David Sheppard in London; Editing by Marguerita Choy, Jim Marshall and David Gregorio)