By Shadia Nasralla
LONDON (Reuters) -Oil prices were heading for another monthly decline on Friday after disappointing U.S. economic data and uncertainty over further interest rate hikes weighed on the demand outlook.
Brent crude futures for June were down 62 cents, or 0.8%, at $77.75 a barrel by 0851 GMT, while the more actively traded July contract was up 60 cents, or 0.8%, at $77.62. Brent is set for its fourth straight monthly fall.
U.S. West Texas Intermediate (WTI) crude lost 71 cents, or 1%, to $74.05 a barrel and is set for its sixth straight monthly decline.
Data on Thursday showed that U.S. economic growth slowed more than expected in the first quarter.
Investors are 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’s next policy meeting is over May 2-3.
On the supply side, Russian Deputy Prime Minister Alexander Novak said on Thursday said the OPEC+ producer group saw no need for further output cuts despite lower than expected Chinese demand.
The Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia, known collectively as OPEC+, this month cut its combined output target by about 1.16 million barrels per day (bpd), which sent oil prices higher.
The market rallied on the OPEC+ announcement but has since weakened on concern about possible recession and the impact that would have on demand.
Energy Information Administration data this week 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.
(Reporting by Shadia NasrallaAdditional reporting by Yuka Obayashi in Tokyo and Jeslyn Lerh in SingaporeEditing by David Goodman)
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