2018.08.1007:02:00UTC+00Oil Inches Higher As IEA Raises Demand Forecast

Oil prices edged higher on Friday after the International Energy Agency (IEA) raised its estimate of world oil demand growth next year by 110,000 barrels a day to 1.5 million barrels.

Brent crude was up 19 cents or 0.26 percent at $72.26 a barrel while West Texas Intermediate futures traded up 0.24 percent at $66.95 a barrel.

In its monthly oil market report, the IEA said that the new U.S. sanctions against Iran could make maintaining the world's oil supply 'very challenging'.

At the same time, the IEA noted that there were risks to the demand forecast from the escalating trade dispute along with any rally in prices caused by supply constraints.

Meanwhile, China has decided to remove crude oil from its latest tariff list as it risks aggravating the U.S. even further.