Oil prices posted mild gains on Friday, but headed for a second week of declines as disappointing U.S. economic data and uncertainty over further interest rate hikes weighed on the demand outlook, Trend reports with reference to Reuters.
Brent crude futures for June rose 44 cents, or 0.6%, to $78.81 a barrel at 0400 GMT, while the more actively-traded July contract was up 47 cents, or 0.6%, at 78.69 a barrel.
U.S. West Texas Intermediate (WTI) crude was up 40 cents, or 0.5%, at $75.16 a barrel.
Both benchmark contracts have declined by about 3.5% this week as of 0400 GMT.
"Crude oil eked out a small gain following two days of heavy selling amid mixed economic signals," ANZ analysts said on Friday.
U.S. economic growth slowed more than expected in the first quarter, although jobless claims fell in the week ending April 22, data showed.
Investors are also worried that potential interest rate hikes by inflation-fighting central banks could slow economic growth and dent energy demand in the United States, Britain and the European Union.
The U.S. Federal Reserve, the Bank of England and the European Central Bank are all expected to raise rates at their coming meetings. The Fed meets over May 2-3.
Oil investors are waiting for the Fed and other central bank decisions next week for guidance on the future direction of interest rates and the global economy, said Satoru Yoshida, a commodity analyst at Rakuten Securities.
"The market is quiet due to a mixture of bullish and bearish economic data and as a recovery in the global equity market gave a relief to investors," he said, referring to oil's slight rebound on Thursday.
U.S. stocks closed higher on Thursday as strong earnings helped investors look past signs of economic weakness.
On the supply side, Russian Deputy Prime Minister Alexander Novak said on Thursday the OPEC+ group saw no need for further output cuts despite lower-than-expected Chinese demand, but that the organisation could always adjust policy if necessary.
The Organization of the Petroleum Exporting Countries (OPEC) and its allies including Russia, known as OPEC+, this month announced a combined output reduction of around 1.16 million barrels per day, which sent oil prices higher.
The market rallied following the OPEC+ announcement, but has weakened in response to concerns about recession and the impact that would have on demand.
Earlier this week, Energy Information Administration data showed that U.S. crude oil and gasoline inventories fell more than expected last week, as demand for the motor fuel picked up ahead of the peak summer driving season.