EIA also said U.S. crude output rose to a record 13.3 million barrels per day (bpd) last week, up from the prior all-time high of 13.2 million bpd.
Brent crude fell 72 cents to $83.68 a barrel at 11:55 a.m. EDT (1555 GMT). West Texas Intermediate crude was down 46 cents at $87.09, after falling by $1 earlier in the session.
Brent crude settled $1.38, or 1.6%, higher at $87.55 a barrel, its highest since Jan. 27.
West Texas Intermediate crude tumbled around 5 percent in late morning trade to under USD 32 per barrel, as hopes for a deal among OPEC countries and Russia to reduce output dwindled.
BlackRock Chairman and CEO Laurence Fink said Friday he's more bullish on stocks than he was a week ago, but he believes crude hasn't hit bottom despite the recent rally in depressed oil prices.