Oil edges higher on prospect of tighter supplies

Oil prices nudged higher in early Asian trade on Monday, supported by the prospect of tighter supplies from OPEC+ producers from May, but concerns about the global economic outlook capped gains.

Brent crude futures gained 13 cents, or 0.2 per cent, to $85.25 a barrel by 2356 GMT, while US West Texas Intermediate crude was at $80.84 a barrel, up 14 cents, or 0.2 per cent.

Both contracts rose for a third straight week last week, returning to levels last seen in November, after the Organization of the Petroleum Exporting Countries and their allies surprised investors by announcing more production cuts that will start in May.