Oil remained stuck near $65 a barrel as signs Saudi Arabia is seeking another big production increase at next month's OPEC+ meeting offset the outlook for summer demand.

Brent futures posted a slight recovery Thursday, but prices have been largely bound to a narrow price range since the middle of May. Broader markets were also moslty flat as traders await US jobs data due on Friday.

Saudi Arabia wants the Organization of the Petroleum Exporting Countries and its allies to continue to add at least 411,000 barrels a day of output in August and potentially September, according to people familiar with the matter.

A limited price drop on Wednesday after the report "supports the view that oil market fundamentals remain constructive heading into summer," said Arne Lohman Rasmussen, chief analyst at A/S Global Risk Management. "The key event this week is Friday's jobs report."

In the US, crude inventories fell by 4.3 million barrels last week, the most since November, data from the Energy Information Administration showed. The drawdown was bigger than an earlier estimate by an industry body. 

Crude has fallen about 13% this year on fears a US-led trade war will sap economic growth and energy demand. President Donald Trump has been calling for talks on tariffs with his Chinese counterpart Xi Jinping, who seems to be reluctant to go ahead with high-level negotiations at this stage. 

Meanwhile, Saudi Aramco cut the price of its main oil grade to buyers in Asia for loading next month, but by less than the reduction signaled in a Bloomberg survey. 

Source: Bloomberg