Oil edged lower on Friday post ticking up the earlier day, as the unsettling situation in the Middle East and US oil supply turmoil from winter chills were offset by worries about China's sluggish demand growth and plenty of supply projections.

Brent crude dipped to 0.3%, to $78.87 per barrel meanwhile US WTI dropped 7 cents to $74.01 per barrel.

Both benchmarks, which gained about 2% on Thursday as the IEA which has joined OPEC in projecting robust growth in the world's oil consumption, is expected to wrap off the week roughly at 1% to 2% higher.

Houthi rebel strikes on American ships persisted on Thursday, almost a week after the US and the UK initiated military operations against their bases in Yemen.

The EIA on Thursday revealed that, despite robust demand from refineries in the week ending January 12, oil stocks in the US dropped by 2.5 million barrels, more than anticipated. However, inventories of gasoline and distillate reached multi-year highs.