Oil prices regain stability

Oil prices advanced after three straight weeks of gains, as expected supply cuts from Saudi Arabia and other OPEC+ producers offset expectations of a slowdown in global growth that could drag back fuel demand.

Crude oil prices rallied more than 6% last week after OPEC+ surprised the market with a new move to cut production in May.

Brent crude fell 68 cents, or 0.76%, to settle at $84.48 a barrel. Meanwhile, US West Texas Intermediate crude rose 63 cents to $80.08.

Those who were defensive are questioning the demand outlook amid the slowdown, while those who were clearly bullish now see an even tighter market for the second half.

The suspension of Iraq’s northern exports compounded the supply tightening. An agreement was signed last week to restore flows, but they had not been renewed as of Thursday’s data.

A sharper drawback in US crude inventories last week and lower gasoline and distillate inventories, pointing to increased demand, also supported oil.

In global financial markets, US inflation statistics can help investors gauge the near-term direction of interest rates.

This week’s report from the United States could dampen sentiment if strong numbers reinforce speculation that the Fed will continue on its tightening path. In contrast, weak numbers point to economic pressures, meaning risk fears are rising in any case.

Also expected are monthly reports from OPEC and the International Energy Agency on Friday, which will update oil demand and supply expectations.

Russian oil output fell by around 700,000 barrels a day, down from 500,000 barrels a day in March, but experts said data on refinery inputs and exports missed the first figure.