Oil set for sixth monthly loss on deteriorating demand outlook

Oil headed for a sixth straight monthly decline — its longest run of such losses in more than eight years — as slowdown concerns in the US and Asia weighed on the outlook.

West Texas Intermediate steadied near $75 a barrel after closing 0.6 per cent higher on Thursday.

Investors see US inflation continuing to accelerate, bolstering expectations the Federal Reserve will be forced to keep raising rates, making a recession more likely.

Falling refiner profit margins in Asia are also signalling demand weakness in the biggest oil-importing region.

Crude has been whipsawed in April, rising sharply after the Organization of Petroleum Exporting Countries and its allies announced an output cut, but then giving up all those gains as the outlook deteriorated.

A hoped-for major rebound in China is still yet to eventuate, while supply from Russia has remained surprisingly resilient despite sanctions and a price cap.

Traders will be on the lookout for first-quarter earnings from oil majors including Exxon Mobil and Chevron — due later Friday — which could provide commentary on the outlook for the global market.

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