Oil rose to $81 a barrel on Friday, rebounding after two days of declines, though prices pared gains after another closely watched forecaster deemed supply adequate and the outlook for demand weakening. In future, a lot of potential supply could come to the market from places like Iran, Iraq, Libya, Nigeria and Venezuela, if their various challenges can be overcome. "The drivers of demand remain very powerful, with petrochemicals being a major factor", the IEA continued.
Oil prices steadied on Friday after a market rout driven by sharp falls in equity markets and indications that supply concerns have been overblown, but were still on track for a fall or more than 4 percent for the week. Brent crude oil is now established above $80/bbl, with infrastructure constraints causing North American prices to lag somewhat.
The Organization of the Petroleum Exporting Countries (OPEC) cut its forecast of global demand growth for oil next year for a third straight month, citing headwinds facing the broader economy from trade disputes and volatile emerging markets.
According to data from cargo tracking and intelligence company Kpler, China purchased 1.58 million barrels of heavy Canadian crude oil for loading in September, up by almost 50 percent compared to the 1.05 million barrels it imported from Canada in April.
Crude oil prices had drifted lower earlier this week amid concerns about excess supply in the market. The revision also reflected changes in the way the agency assesses Chinese consumption.
The U.S. Energy Information Administration (EIA) on Thursday reported rises in both crude oil and gasoline inventories.
Oil found support from figures showing that China's daily crude imports in September hit their highest since May and from a rebound in equities.
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Still, the monthly report by the International Energy Agency (IEA) on Friday weighed. New data for OECD stocks show that in August they increased by a more- than-normal 16 mb and have been relatively stable for several months after falling significantly following the implementation of the original Vienna Agreement.
The IEA warned that recent peaks in supply and demand have put a strain on spare capacity.