Crude oil futures were stable to higher during mid-morning trade in Asia Wednesday after the American Petroleum Institute reported a larger-than-expected draw in USA crude inventories and geopolitical tensions remained in focus ahead of the re-imposition of U.S. sanctions on Iran.
Oil prices slipped during Thursday's Asian session, undoing some of the gains made during Wednesday's NY trading session.
Brent for November settlement rose 38 cents to US$79.44 on the ICE Futures Europe exchange after a 2.2% advance on Tuesday.
The EIA's most recent weekly ethanol production data shows production reached 1.087 million barrels per day the week ending August 31, up from 1.07 million barrels per day the previous week.
Also supporting prices were supply concerns surrounding USA sanctions on Iran.
Oil prices were up on the week, buoyed in earlier sessions by a larger-than-expected draw in USA crude inventories, weakness in the US dollar and a reported fall in US production, Commerzbank said in a note.
In the U.S., crude inventories dropped by 5.3 million barrels, to 396.2 million barrels last week.
In a monthly report, the Organization of the Petroleum Exporting Countries said world oil demand next year would rise by 1.41 million barrels a day, 20,000 barrels less than last month and the second consecutive reduction in the forecast.
Tehran faces the loss of the majority of its export markets for energy as Washington prepares to place sanctions on its sale of oil beginning November 4 after it pulled out of the nuclear deal with Iran last May.
Supply data from the Energy Information Administration will be released later today.
"A bout of profit-taking is pushing the energy complex down after two days of stellar gains", said Stephen Brennock, an analyst at PVM Oil.
Novak said global oil markets were "fragile" due to geopolitical risk and supply disruptions.
"But we are clear that these are commercial decisions-dependent on how competitively oil is priced and on the requirements of our refineries", said the official. The increase was driven by higher output in Libya, Iraq and Nigeria.
OPEC said the world will need 32.05 million bpd from its 15 members in 2019, unchanged from last month. The decline was prompted by concerns about demand that relate directly to the trade war between the United States and China.
Oil traders were also watching the progress of category 4 Hurricane Florence, which is expected to make landfall in the USA by Friday.