Oil prices experienced minimal movement during Asian trading on Friday, amid ongoing worries regarding tighter supplies from Libya and Iraq.

However, they continued to reflect losses for the month of August, as traders expressed concerns about a potential decline in demand.

This week, crude prices recovered from previous declines due to a production halt in Libya and reports of anticipated production reductions in Iraq, which suggested a tighter supply scenario.

Additionally, indications of economic resilience in the U.S. and ongoing expectations for interest rate cuts supported price levels. Nevertheless, these factors were counterbalanced by apprehensions that global oil demand may weaken as the busy summer travel season concludes.

Economic data from China raised concerns about a slowdown in the world's largest oil importer, further influencing market sentiment. As of 22:03 (02:03 GMT), Brent oil futures for October increased by 0.2% to $80.08 per barrel, while West Texas Intermediate crude futures rose by 0.1% to $75.98 per barrel.

Despite these slight gains, both contracts were still projected to end August with losses ranging from 1.7% to 2.5%, having previously dropped to seven-month lows earlier in the month due to heightened fears of a global economic downturn impacting demand forecasts.

Throughout the month, while fears largely subsided, apprehensions regarding diminishing demand continued to persist, particularly due to a lack of encouraging signals from China, the leading importer.

Nevertheless, a more favorable outlook towards the United States, the largest consumer of fuel globally, contributed to a reduction in oil price declines.

The anticipation of interest rate reductions in September emerged as a significant factor driving this sentiment, following a series of accommodating indications from the Federal Reserve.

The release of the PCE price index data, which is the Fed's preferred measure of inflation, is expected later on Friday and may provide further insights into the trajectory of U.S. interest rates.

Additionally, positive GDP figures published on Thursday indicated that U.S. economic growth in the second quarter was considerably stronger than previously estimated.

In terms of oil production, prices surged by over 1% on Thursday after Reuters disclosed Iraq's intention to cut its oil output in September as part of an agreement with the Organization of Petroleum Exporting Countries.

Iraq's production will be reduced to between 3.85 million and 3.9 million barrels per day, down from approximately 4.25 million bpd in July.

Furthermore, production disruptions in Libya continued, with reports indicating that more than half of the nation’s oil output was offline this week due to escalating disputes regarding the leadership of the central bank.