By Florence Tan
SINGAPORE, April 10 (Reuters) - Oil prices nudged higher
in early Asian trade on Monday, supported by the prospect of
tighter supplies from OPEC+ producers from May, but concerns
about the global economic outlook capped gains.
Brent crude futures gained 13 cents, or 0.2%, to
$85.25 a barrel by 2356 GMT, while U.S. West Texas Intermediate
crude was at $80.84 a barrel, up 14 cents, or 0.2%.
Both contracts rose for a third straight week last week,
returning to levels last seen in November, after the
Organization of the Petroleum Exporting Countries and their
allies surprised investors by announcing more production cuts
that will start in May.
The group known as OPEC+ will be cutting mostly sour crude
supplies from Middle East producers.
Following the announcement, top exporter Saudi Arabia raised
its May crude prices to term customers in Asia and the United
States.
Separately, investors are watching the progress of talks
between Iraq and Kurdistan to restart northern oil exports which
could bring more sour crude to the global market.
Further supporting prices, the number of U.S. oil rigs fell
by two to 590 last week, while gas rigs dropped by two to 158,
according to a Baker Hughes Co report on Thursday, a
sign that U.S. production won't be rising in the near term.
In global financial markets, the closely watched U.S.
inflation report to be released this week could help investors
gauge the near-term trajectory for interest rates.
Despite expectations that the Federal Reserve could slow
down rate hikes because of the recent banking crisis, borrowing
costs could still climb if inflation remains strong, analysts
said.
Sharp rate hikes have boosted the greenback, making
dollar-denominated commodities such as oil more expensive for
investors holding other currencies.
(Reporting by Florence Tan; Editing by Sonali Paul)
florence.tan.thomsonreuters.com@reuters.net))
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.