TOKYO, April 27 Reuters Oil prices steadied on Thursday after the previous day39;s price drop erased the supportive impact of a surprise cut to OPEC production targets this month.

Brent crude edged up 18 cents, or 0.23, to 77.87 a barrel by 1344 GMT while U.S. West Texas Intermediate crude rose 12 cents, or 0.16, to 74.42.

Prices stabilised as Russian Deputy Prime Alexander Novak described oil markets on Thursday as balanced.

The OPEC group of leading oil producers does not see the need for further oil output cuts but is always able to adjust its policy, Novak said.

Oil prices dropped almost 4 on Wednesday as jitters about a U.S. economic downturn overshadowed a larger than expected fall in U.S. crude inventories.

U.S. capital goods spending fell more than expected, the latest data showed, and weak risk sentiment spread from the banking sector after First Republic Bank39;s continued slump.

Data on Thursday showed U.S. economic growth slowed by more than expected in the first quarter, although jobless claims fell in the week ending April 22.

Analysts see weak refinery margins as a major contributor to the recent oil price decline, with oil broker PVM39;s Tamas Varga pointing to heating oil and gasoil as the main possible culprit for the outsized weakness.

Inventories in this product are somewhat reluctant to deplete, possibly due to resilient Russian exports, Varga said.

Russia has increased exports of refined products despite an EU embargo and oil price cap,…