By Laila Kearney
(Reuters) – Oil prices rose in early trading on Friday on the prospect of continued OPEC+ production cuts, but oil benchmarks were headed for weekly losses due to U.S. economic uncertainty and limited disruptions in the oil supply caused by the Israel-Hamas war.
Brent crude futures for July rose 16 cents to $83.83 a barrel at 0008 GMT. U.S. West Texas Intermediate crude oil for June rose 19 cents to $79.14 per barrel.
Still, both benchmarks were on track for weekly losses as investors worried about the prospect of higher interest rates for longer, which would constrain growth in the U.S., the world’s top consumer of oil, while the war in the Middle East showed little sign of disrupting global oil. supplies.
Brent headed for a 6.3% weekly decline, while WTI advanced to a 5.6% loss for the week.
The drop comes just weeks before the next meeting of the Organization of the Petroleum Exporting Countries and Russian-led allies, together called OPEC+.
Three OPEC+ producer sources said the group could extend its voluntary oil production cuts of 2.2 million barrels per day beyond June if oil demand does not increase, but the group has not yet started formal talks before of the June 1st meeting.
The market is now paying attention to US economic data and indicators of the future supply of crude oil from the world’s largest producer.
On Friday, the U.S. Bureau of Labor Statistics releases its monthly nonfarm payrolls report, which is a measure of the strength of the nation’s labor market and is considered by the Federal Reserve when setting interest rates. Higher rates typically weigh on the economy and can reduce demand for oil.
Also on Friday, energy services company Baker Hughes is expected to release its weekly oil and gas rig count, an indicator of future oil production. [RIG/U]
(Reporting by Laila Kearney in New York; Editing by Sonali Paul)
