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Oil mixed as U.S. data boosts WTI; Brent lags

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Brent crude futures eased in choppy trading on Friday on improving supply and concerns about tepid demand for oil in Europe and China, while U.S. crude rose on supportive data from the United States.

Slowing economic activity in Europe and Asia has dampened demand for oil, while supply is on the rise. Libya's output has reached 925,000 barrels per day (bpd), the highest since militias turned on each other after the overthrow of Muammar Gaddafi.

The U.S. economy grew at its fastest pace in 2-1/2 years in the second quarter with all sectors contributing to the jump in output, the Commerce Department said. The report raised the estimate of gross domestic product (GDP) to show the economy expanded at a 4.6 percent annual rate, in line with Wall Street's expectations.

Brent crude for November delivery was flat near $97 a barrel. Front-month prices fell to an intra-day low of $95.60 on Wednesday, the lowest since July 2012.

U.S. crude rose $1.01 to settle at $93.54 a barrel, heading for a modest gain for a second straight week.

Both crude contracts remained on pace for a third straight monthly loss. Brent's looming 6 percent monthly drop would be its biggest monthly drop since April 2013. Brent's premium to U.S. crude fell below $4 a barrel on Friday. The spread narrowed to $3.66 intraday, its narrowest since Sept. 15.

U.S. consumer sentiment finished September at its strongest in more than a year on growing optimism about the economy and more favorable outlook on future income, the Thomson Reuters/University of Michigan's final September reading showed.

Iran urged OPEC members to make joint efforts to keep oil prices from falling further, highlighting a split with other members such as Saudi Arabia who face less budget pressure even with the slide in crude prices.

OPEC's Nov. 27 meeting will likely see a debate on whether its current production target of 30 million bpd is appropriate for 2015. OPEC and other forecasters expect a further drop in global demand for OPEC crude.