LONDON — Oil extended gains above $65 a barrel today to reach a fresh six-month high after the U.S. reported a fall in oil inventories and further signs of economic improvement.

Benchmark crude for July delivery was up 67 cents to $65.75 a barrel by late morning in Europe in electronic trading on the New York Mercantile Exchange. On Thursday, the contract rose $1.63 to settle at $65.08, a six-month high and almost double the lows reached in March, when it fell below $35 a barrel.

The Energy Department's Energy Information Administration on Thursday said U.S. oil supplies dropped unexpectedly by 5.4 million barrels last week.

Though crude inventories remain near 19-year highs, it was the third week in a row that supplies have fallen.