HOUSTON: Brent crude futures eased in choppy trading on Friday on improving supply and concerns about tepid demand for oil in Europe and China, while US crude rose on supportive data from the United States.
Slowing economic activity in Europe and Asia has dampened demand for oil, while supply is on the rise.
Libya's output has reached 925,000 barrels per day (bpd). "At the moment, supplies are abundant and demand is weaker," said Andrey Kryuchenkov, an analyst at London-based VTB Capital.
The US economy grew at its fastest pace in 2-1/2 years in the second quarter with all sectors contributing to the jump in output, the Commerce Department said.
The report raised the estimate of gross domestic product (GDP) to show the economy expanded at a 4.6 percent annual rate, in line with Wall Street's expectations.
Brent for November delivery was down 12 cents at $96.88 a barrel at 11:10 a.m. EDT (1510 GMT).
US November crude rose 50 cents to $93.03 a barrel.
US October RBOB gasoline RBc1 futures were off 6.92 cents at $2.6488 a gallon, after jumping more than five cents on Thursday.
Both crude contracts remained on pace for a third straight monthly loss. Brent's looming 6 percent monthly drop would be its biggest monthly drop since April 2013.
Brent's premium to US crude fell below $4 a barrel on Friday. The spread narrowed to $3.66 intraday, its narrowest since Sept. 15.
"The GDP report was certainly supportive for US crude and the view that demand in the United States will remain strong," said John Kilduff, partner at Again Capital in New York.
"Brent is being buffeted by the supply dynamic and mixed messages from OPEC on output control," Kilduff added.
US consumer sentiment finished September at its strongest in more than a year on growing optimism about the economy and more favorable outlook on future income, the Thomson Reuters/University of Michigan's final September reading showed.
Iran urged OPEC members to make joint efforts to keep oil prices from falling further, highlighting a split with other members such as Saudi Arabia who face less budget pressure even with the slide in crude prices.
OPEC's Nov. 27 meeting will likely see a debate on whether its current production target of 30 million bpd is appropriate for 2015. OPEC and other forecasters expect a further drop in global demand for OPEC crude.
Caution about conflict in the Middle East is expected to continue to limit any move lower by crude prices ahead of the weekend.
Brent slips in choppy trading
