Oil is heading to record the second monthly loss under on weak US data

Oil prices are set to record another monthly decline on Friday after disappointing US economic data and uncertainty about an interest rate hike affected demand expectations.

By 0946 GMT, Brent crude futures for June delivery were up 42 cents, or 0.5 percent, at $78.79 a barrel. These contracts expire on Friday, and the most traded contract for the month of July rose 1 cent to $78.21 a barrel.

Brent prices recovered earlier losses after data showed that the euro zone returned to growth in the first quarter, albeit modestly and slower than expected.

US West Texas Intermediate crude fell 15 cents, or 0.2 percent, to $74.61 a barrel, and is on track for its sixth consecutive monthly loss.

Data on Thursday showed that US economic growth slowed more than expected in the first quarter, but jobless claims fell in the week ending April 22.

Investors also fear that interest rate increases that central banks may introduce in the framework of combating inflation may slow economic growth and weaken energy demand in the United States, Britain and the European Union.

The Federal Reserve, the Bank of England and the European Central Bank are expected to raise interest rates at their next meetings. The Fed meets on the second and third of May.

On the supply front, Russian Deputy Prime Minister Alexander Novak said on Thursday that the OPEC+ alliance sees no need for an additional oil production cut even though Chinese demand came in lower than expected, but added that the group is always able to adjust its policy if necessary.

The OPEC+ alliance, which includes the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia, announced this month a total production cut of about 1.16 million barrels per day.

The market rebounded after the OPEC + announcement, but later retreated due to fears of a recession and its impact on demand.