TOKYO, May 12 Reuters Oil prices stabilised on Friday and were set to end the week flat as the market balanced supply fears against renewed economic concerns in the United States and China.

Brent crude futures was down 5 cents, or 0.07, at 74.93 a barrel by 1145 GMT. West Texas Intermediate WTI U.S. crude futures were up 4 cents, or 0.06, at 70.91.

Analysts forecast an emerging supply deficit for the second half of the year, pointing to an OPEC report on Thursday, which said the producer group expects JulyDecember demand for its own crude to be 90,000 barrels per day bpd higher than previously projected.

The oil market is barrelling towards a supply deficit, assuming OPEC delivers on its latest production cuts, said PVM oil market analyst Stephen Brennock.

Commerzbank analysts, meanwhile, said that the emerging sizeable supply deficit confirms our expectation of rising oil prices during the course of the year.

The Organization of the Petroleum Exporting Countries OPEC kept its global oil demand forecast for 2023 unchanged on Thursday, expecting economic risks to be offset by higher Chinese demand growth.

Traders are waiting for one of two events to dictate the path of travel going forward; another bank failure or an OPEC production cut, said Craig Erlam, senior markets analyst at OANDA.

There is mounting concern that the United States the world39;s biggest oil consumer will enter recession, with talks over the U.S. government39;s debt ceiling postponed and…