TOKYO, April 28 Reuters Oil prices were heading for another monthly decline on Friday after disappointing U.S. economic data and uncertainty over further interest rate hikes weighed on the demand outlook.

Brent crude futures for June were up 42 cents, or 0.5, at 78.79 a barrel by 0946 GMT while the more actively traded July contract was down 1 cent at 78.21. Brent is set for its fourth straight monthly fall.

Brent prices retraced earlier losses after data showed the euro zone returned to growth in the first quarter, albeit only modestly and more slowly than expected.

U.S. West Texas Intermediate WTI crude lost 15 cents, or 0.2, to trade at 74.61 a barrel and is set for its sixth straight monthly decline.

Data on Thursday showed that U.S. economic growth slowed more than expected in the first quarter.

Investors are worried that potential interest rate hikes by inflationfighting central banks could slow economic growth and dent energy demand in the United States, Britain and the European Union. The U.S. Federal Reserve39;s next policy meeting is over May 23.

On the supply side, Russian Deputy Prime Minister Alexander Novak said on Thursday said the OPEC producer group saw no need for further output cuts despite lower than expected Chinese demand.

The Organization of the Petroleum Exporting Countries OPEC and allies including Russia, known collectively as OPEC, this month cut its combined output target by about 1.16 million barrels per day bpd, which sent oil prices…