Oil prices posted modest gains on Friday, but headed for a second week of declines as disappointing US economic data and uncertainty over further rate hikes weighed on the demand outlook.
Brent crude futures for June rose 44 cents, or 0.6%, at 0400 GMT to $78.81 a barrel, while the more actively-traded July contract was up 47 cents, or 0.6%, at 78.69 a barrel.
West Texas Intermediate (WTI) crude was up 40 cents, or 0.5%, at $75.16 a barrel.
Both benchmark contracts are down about 3.5% as of 0400 GMT this week.
Despite mixed economic signals, crude oil has made a small gain after two days of heavy selling.
U.S. economic growth slowed more than expected in the first quarter, but jobless claims fell in the week ending April 22, data show.
Investors also worry that potential rate hikes by inflation-fighting central banks could slow economic growth and reduce energy demand in the US, UK, and European Union.
The US Federal Reserve, the Bank of England, and the European Central Bank are expected to raise interest rates at their upcoming meetings. The Fed meets on May 2-3.
Oil investors will await Fed and other central bank decisions next week on the future direction of interest rates and the global economy.
Despite fluctuating economic data, the market is calm as the recovery in the global stock market puts investors at ease.
US stocks closed higher on Thursday as strong gains helped investors overlook signs of economic weakness.
The OPEC+ group did not require further production cuts despite lower-than-expected Chinese demand, but the organization can adjust its policy if necessary.
The Organization of the Petroleum Exporting Countries (OPEC) and its allies, including Russia, announced a combined production cut of about 1.16 million barrels per day this month, pushing oil prices higher.
The market rebounded after the OPEC+ announcement but was weakened by recession concerns and its impact on demand.
Earlier this week, Energy Information Administration data (EIA) showed US crude and gasoline stockpiles fell more than expected last week as demand for motor fuel surged ahead of summer’s peak driving season.
