Daily Analysis UKOIL 24 Apr 2023

On Monday, oil prices declined over 1% due to concerns regarding rising interest rates and the risk of recession that have weighed on the outlook for energy demand. The retreat from the boost they received at the start of the month when OPEC+ announced surprise output cuts, coupled with weak U.S. economic data and disappointing corporate earnings from the tech sector, has fanned recession jitters. Both contracts experienced their first weekly drop in five last week, as U.S. implied gasoline demand fell from a year ago, sparking worries of a recession. The outlook for energy demand has also been clouded by China's bumpy economic recovery from COVID-19, despite record-high imports from top suppliers Russia and Saudi Arabia in March.

Price action show a support level around the 80.4 is holding as a confluence point where the 200MA and the closing point of the gap are at work. Further development in price will be related to Economic Data and events this week as is the ecase for different market classes.

 Support:80.80 – 79.00 – 77.00          Resistance: 83.60 – 85.00 – 86.40