US sanctions drove down Tehran's July exports of crude oil by 130,000 bpd to 400,000 bpd, the lowest since the 1980s.
WTI rose as much as 4.1% in NY, but is still on track to lose about 2% this week.
In a clear sign of its determination to support market re-balancing, Saudi Arabia's production was 0.7 million barrels per day lower than the level allowed by the output agreement, the IEA said. The deepening spat between Beijing and Washington and a surprise gain in USA stockpiles helped drive prices to a seven-month low on Wednesday. In view of the sliding oil prices, Saudi Arabia has contacted other oil producers to discuss a potential oil strategy response to the slumping price of oil, a Saudi official told Bloomberg on Thursday.
A large-volume bullish options trade was reported just after 9 a.m.in NY, for 25,500 contracts - equivalent to 25.5 MMbbl.
The trade war between the United States and China and a broader decline in world economic growth are weakening the demand for oil and pushing prices down, the International Energy Agency said Friday. The buyer of the options would profit from a tighter supply and demand outlook for WTI at the end of the year, helping to push oil prices higher.
Will WTI regain 53.00 amid US-China trade woes, bearish IEA forecast? The contract rose $1.45 on Thursday, snapping three days of losses.
Brent crude futures gained $1.15, or 2%, to settle at $58.53 a barrel.
For the record, the IEA in its latest monthly report lowered its global demand growth forecasts for 2019 and 2020 to 1.1 million and 1.3 million barrels per day (bpd), respectively, and it cited China as the only major source of growth at 500,000 bpd for the first half of this year. That was just in time for a 6.7 per cent price jump in the past two days after Saudi Arabia was said to mull measures to ease the rout.
According to IEA's estimate reported by TASS, OPEC's compliance with the production cuts that were extended into 2020 in early July was 119 percent last month, while the non-OPEC countries part of the deal showed overall compliance of 107 percent with their share of the cuts.
Furthermore, the downside risks loom amid swelling US crude inventories, as the focus now shifts towards the US Baker Hughes Oil Rigs Count data due on the cards later today at 1700 GMT.