The weaker outlook comes as pressure is increasing on the Organization of Petroleum Exporting Countries and its allies to pump more to offset the impact of looming USA sanctions on Iran and Venezuela's collapsing oil industry.
U.S. West Texas Intermediate crude settled 67 cents, or almost 1%, higher at $74.96/Bbl.
Oil prices slipped on Wednesday after the International Monetary Fund lowered its global growth forecasts, but markets were supported as Hurricane Michael moved toward Florida causing the shutdown of almost 40 per cent of U.S. Gulf of Mexico crude production. Brent crude LCOc1 last week reached $86.74, the highest since 2014. Bijan Zanganeh-Iran's Oil Minister-reported that the oil market will not tolerate Saudi Arabia's claim that it has been compromising for the loss of Iran's oil exports.
On the other hand, the country could be save some dollars as it will have to spend less in purchasing crude that it imports.
The monthly report from the Organization of the Petroleum Exporting Countries showed the 15-nation producer group's output rose by 132,000 bpd in September to almost 32.8 million bpd.
He also noted that triple digit prices "would require a sustainable outage in Iranian exports going down to zero plus another disruption someplace like Venezuela; the way we're seeing it is long dated oil prices are rising, the front-end is weakening which is telling you that hey, we don't have a problem today, we potentially have a problem tomorrow". As reported by S&P Global Platts, the analysts predict that while the US pressure on the regime of Maduro would not contain limitations on the USA imports of Venezuelan crude oil, it could contain new restrictions on the USA refined product exports and light oil exports to Venezuela.
The U.S. President has reaffirmed economic sanctions on Iran during his recent speech at the United Nation's General Assembly.
Crude stocks at the Cushing, Oklahoma, delivery hub rose by 2.2 million barrels, API said.
In its Monthly Oil Market Report for October, released Thursday morning, the Organization of the Petroleum Exporting Countries (OPEC) noted that the cartel's average price for its reference basket soared by $4.92 (up 7%) to $77.18 a barrel in the month of September.
On November 4, a second batch of potentially more damaging sanctions will be re-imposed on Iran's oil and shipping sectors as well as its central bank.
Oil prices have rallied this year on expectations that US sanctions on Iran will strain supplies by lowering shipments from OPEC's third-largest oil producer.
Pradhan said that Iran was India's second biggest supplier of crude oil after Saudi Arabia till 2010-11 but western sanctions over its suspected nuclear program relegated it to the 7th spot in the subsequent years.
Russian Federation achieved a new post-Soviet oil production record in September with 11.54 million barrels per day on average. As supply conditions continue to tighten, crude oil prices are rallying as a result.