Oil prices stabilise after hefty losses

TOKYO, April 27 (Reuters): Oil prices steadied on Thursday after the previous day's price drop reversed the supportive impact of a surprise cut to OPEC production targets this month.

Brent crude edged up by 25 cents, or 0.32 per cent, to $77.94 a barrel by 1209 GMT while US West Texas Intermediate crude rose 19 cents, or 0.26 per cent, to $74.49. Prices stabilised after Russian Deputy Prime Alexander Novak described oil markets on Thursday as balanced.

The OPEC+ group of leading oil producers does not see the need for further oil output cuts but is always able to adjust its policy, Novak said.

Oil prices dropped almost 4.0 per cent on Wednesday as jitters about a US economic downturn overshadowed a larger than expected fall in US crude inventories.

US capital goods spending fell more than expected, the latest data showed, and weak risk sentiment spread from the banking sector after First Republic Bank's continued slump.

Analysts see weak refinery margins as a major contributor to the oil price decline, with oil broker PVM's Tamas Varga pointing to heating oil and gasoil as "the main possible culprit for the outsized weakness".