Oil prices traded lower on Thursday as another round of weak U.S. economic data stoked recession fears.
Prices still headed for a weekly gain after an unexpected output cut by OPEC and its allies.
Benchmark Brent crude futures fell 0.4 percent to $84.67 a barrel, while WTI crude futures were down half a percent at $80.25.
Both contracts were on track to gain more than 6 percent for the week after the OPEC+ group announced a sudden production cut and data showed a fall in U.S. crude oil inventories.
Data released by Energy Information Administration (EIA) showed crude inventories fell by 3.7 million barrels in the week ended March 31, implying an uptick in crude demand.
The data also showed gasoline and distillate stockpiles dropped by 4.1 million barrels and 3.6 million barrels, respectively last week.
As recession worries mount, traders await more U.S. data, including the all-imports jobs report, due on Friday for direction.
U.S. private employers hired far fewer workers than expected in March and growth in the country's service sector activity slowed by much more than expected in the month, adding to the gloom surrounding the economic outlook.
