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Brent and U.S. crude have both gained more than 6% this week
after the Organization of the Petroleum Exporting Countries
(OPEC) and allies including Russia - a group known as OPEC+ - on
Sunday pledged surprise production cuts.
Crude dipped on Thursday, however, as weak U.S. economic data
raised concern over economic growth. The U.S. services sector
slowed more than expected in March and U.S. job openings in
February dropped to their lowest in nearly two years.
"The oil market's bullish momentum may have paused, but upside
potential remains given the tightening supply backdrop," said
Stephen Brennock of oil broker PVM.
Brent crude fell 17 cents, or 0.2%, to $84.82 a barrel by 1032
GMT. West Texas Intermediate U.S. crude dipped by 16 cents, or
0.2%, to $80.45. There is no trading on Friday because of the
Good Friday holiday.
The U.S. dollar index strengthened on Thursday, rebounding from
a recent two-month-low. A stronger dollar makes crude becomes
more expensive for holders of other currencies and tends to
reflect greater risk aversion among investors.
"A slowdown in the U.S. economic outlook is weighing on the
upside on U.S. oil prices, however we continue to expect a
further uptick in oil prices to the end of the quarter,"
National Australia Bank analysts Baden Moore and Adam Skelton
wrote in a note.
Also underpinning the market was this week's snapshot of U.S.
supply, which showed crude inventories fell by a more than
expected 3.7 million barrels while gasoline and distillate
inventories also declined, hinting at rising demand. [EIA/S]
(Reporting by Alex LawlerAddditional reporting by Katya
Golubkova in Tokyo and Muyu Xu in SingaporeEditing by David
Goodman)
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