Methods are provided for producing low oxygen biomass-derived pyrolysis oil from carbonaceous biomass feedstock. The carbonaceous biomass feedstock is pyrolyzed in the presence of a steam reforming catalyst to produce char and pyrolysis gases. During pyrolysis, a portion of the oxygenated hydrocarbons in the pyrolysis gases is converted into hydrocarbons by steam reforming also yielding carbon oxides and hydrogen gas. The hydrogen gas at least partially deoxygenates a residual portion of the oxygenated hydrocarbons. Additional hydrogen gas may also be produced by water-gas shift reactions to deoxygenate the residual portion of the oxygenated hydrocarbons in the pyrolysis gases. Deoxygenation may occur in the presence of a hydroprocessing catalyst. A condensable portion of the pyrolysis gases is condensed to form low oxygen biomass-derived pyrolysis oil.