Oil steady, US economy heading for weekly decline on worries

Oil prices rose in early trade on Friday on continued OPEC+ production cuts, but crude benchmarks slipped to weekly losses on U.S. economic uncertainty and limited crude supply disruptions caused by the Israel-Hamas war.

Brent crude for July delivery was up 16 cents at $83.83 a barrel by 0008 GMT. U.S. West Texas Intermediate crude for June delivery rose 19 cents to $79.14 a barrel.

However, both indexes were on track for weekly losses as investors worried about the prospect of higher long-term interest rates, the U.S., the top global oil consumer, curbing growth, while the war in the Middle East showed little sign of disrupting global oil. goods.

Brent slid 6.3 percent for the week, while WTI moved to a 5.6 percent loss for the week.

The drop comes weeks before the next meeting of the Organization of the Petroleum Exporting Countries and its Russia-led allies, together known as OPEC+.

Three sources from OPEC+ producers said the group could extend its voluntary oil production cuts by up to 2.2 million barrels a day beyond June if oil demand fails to pick up, but the group has yet to start formal talks ahead of the June 1 meeting.

The market is now looking towards US economic data and indicators of future crude supply from the world's top producer.

On Friday, the US Bureau of Labor Statistics releases its monthly nonfarm payrolls report, a measure of the strength of the nation's job market and considered by the Federal Reserve when setting interest rates. Higher rates generally weigh on the economy and that can reduce oil demand.

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On Friday, energy services company Baker Hughes is set to release its weekly oil and gas rig count, an indicator of future crude production.

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