Inventories at the Cushing, Oklahoma, delivery hub for US crude futures, located in the PADD 2 or the Midwest, fell 1.2 million barrels, EIA said.
More output by members of OPEC the Organization of Petroleum Countries was able to offset the seasonal declines by non-OPEC members, though supply from non-OPEC nations was up as well by 2.6 million barrels per day, led by the United States.
The Wall Street Journal said OPEC's total oil production climbed last month, in a sign the oil cartel is sticking with a decision to begin pumping out more barrels of crude this summer after more than a year of holding back output.
Brent crude futures climbed 30 cents, or 0.4 per cent, to $79.36 a barrel.
Also, Asian buyers opted to take light sweet United States' oil rather than Nigerian, Reuters reported on Monday.
Kemp concluded his forecast by citing Energy Information Administration figures showing that US crude production in 2018 will likely average 10.66 million bpd, down from 10.79 million bpd at the time of its July forecast.
"Iran is increasingly becoming the preoccupation of the crude market", said consultants JBC Energy. WTI futures gained 2.5 percent in the previous session.
WORLD oil consumption will top 100 million barrels per day (bpd) in the next three months, putting upward pressure on prices, although emerging market crises and trade disputes could dent this demand, the International Energy Agency said on Thursday.
Tanker data suggest Iranian crude exports are already off by about 500,000 bpd - some of it floating in tankers in the waters of the Gulf waiting to find ports to unload.
Last month, in its August STEO, the EIA predicted that ethanol production would average 1.04 million barrels per day in both 2018 and 2019.
Novak said global oil markets were "fragile" due to geopolitical risks and supply disruptions, but added his country could raise output if needed.
"Things are tightening up", the agency said in its monthly report, but added: "As we move into 2019, a possible risk to our forecast lies in some key emerging economies, partly due to currency depreciations versus the USA dollar raising the cost of imported energy". But unlike in the previous round of sanctions, the U.S. Administration has now expanded the scope of the petroleum products that fall under sanctions.
OPEC said the world will need 32.05 million bpd from its 15 members in 2019, unchanged from last month.
While Iran's liquefied petroleum gas (LPG) exports in August jumped to the highest in almost two years, mostly thanks to China which imposed tariffs on U.S. LPG, Tehran lost customers in East Africa-Kenya and Tanzania have stopped importing LPG from Iran due to the sanctions, according to Platts tracking data and sources.