Crude oil prices were nearly flat early Friday amid expectations of supply reductions following recent cuts, and a report indicating Chinese economic growth may have slowed.

West Texas Intermediate front-month traded at $52.48 per barrel as of 8:37 a.m. EST, down 0.2 percent, while Brent front-month traded at $61.29, or 0.3 percent lower.

"We are still working through the glut of oil left in the market by the failed Iran sanctions. That will continue for a couple more weeks," Matt Badiali, commodities analyst at Banyan Hill Research, told UPI.

The United States had announced nuclear related sanctions against Iran in May that went into effect on Nov. 5. This had created fears of supply disruption and led some producers to hike output. On the same day the sanctions went into effect, however, the U.S. granted waivers to eight countries, changing the view to one of oversupply, and leading to an oil price rout.

Recent announcements of cuts, following the announcement of an OPEC and non-OPEC agreement last week to cut 1.2 million barrels per day, will help eliminate some supply. "The market got its cut, on paper at least," Badiali said.

Brent prices had declined to just over $59 per barrel at several points during the last week of November, before OPEC announced the cut last Friday.

Early this week Brent traded once again at under $60 per barrel, before moving higher. The price was also helped by news of oil production cuts in Canada starting in January, as well as in Libya after a militia invaded a field, representing together potentially some 0.6 million barrels coming off the market.

"From here, prices will go higher to stabilize around $60 to $65 per barrel," Badiali said.

China on Friday issued a retail and industrial activity report potentially indicating an economic slowdown, possibly influenced by the impact of U.S. trade tariffs imposed earlier this year.

China in February became the world's biggest crude oil importer and a slowdown there could affect global oil demand.

The report showed retail sales growth slowed to just over 8 percent in November, the lowest rate in 15 years. In addition, industrial production growth slowed to 5.4 percent in November, the lowest rate in a decade, the South China Morning Post reported on Friday.

Concerns about an economic slowdown in China have been high. The arrest earlier this month of a Chinese Huawei official in Canada, at the request of the United States, caused concerns about a worsening of trade relations that contributed to oil price declines.

Traders have expressed worries that tariffs and countertariffs exchanged between the United States and China could have ripple effects and eventually reduce economic activity worldwide. The two countries are the world's two biggest economies.

At the end of November, China and the United States agreed on a 90-day truce before new sanctions that had been expected to take effect in January would be applied.

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