OPEC could extend supply cuts beyond June, sources say
Upcoming U.S. oil and gas weekly rig count

LONDON, May 3 Reuters Oil prices edged higher on Friday, but headed for their steepest weekly loss in three months as uncertainty about demand and high interest rates drove a selloff limited by the prospect OPEC will continue to curb output.

Brent crude futures for July rose 31 cents, or 0.4, to 83.98 a barrel by 0755 GMT. U.S. West Texas Intermediate crude for June was up 26 cents, or 0.3, to 79.21 per barrel.

Both benchmarks are set for weekly losses as investors are concerned higherforlonger interest rates will curb economic growth in the U.S., the world39;s leading oil consumer, as well as in other parts of the world.

Brent was on course for a 6.2 weekly decline, and WTI for a loss of 5.6 on the week.

We view the commodities selloff over the last two days as collateral damage from the Fed repricing and nonfundamental in nature, JP Morgan analysts wrote in a note.

For further guidance, the market awaits U.S. economic data and indicators of future crude supply from the world39;s top producer.

The U.S. Federal Reserve held interest rates steady this week, and flagged high inflation readings that could delay rate cuts.

Later on Friday, the U.S. Bureau of Labor Statistics will release its monthly nonfarm payroll report, a measure of the strength of the country39;s job market the Fed takes into consideration when setting interest rates.

Higher rates typically weigh…