Oil edges higher as market weighs Russian supply cuts amid demand fears

HOUSTON: Oil prices edged higher on Monday, rebounding from early losses as investors weighed Russia plans to cut crude production and short-term demand concerns ahead of US inflation data.

Brent futures for April delivery rose 30 cents, or 0.4 percent, to $86.69 a barrel, by 12:35 pm ET (17:35 GMT). US crude rose 58 cents, or 0.7 percent, to $80.30 per barrel gain.

“The fundamental backdrop for oil is still very strong,” said Phil Flynn, analyst at Price Futures Group. “With China reopening, we will see more demand and Russia and OPEC has the same or less supply, which is bullish.”

Oil prices had risen on Friday to its highest in two weeks after Russia, the world’s third-largest oil producer, said it would cut crude production in March by 500,000 barrels per day (bpd), or about 5 percent of output, in retaliation against Western curbs imposed on its exports in response to the Ukraine conflict.