Daily Analysis UKOIL 28 Apr 2023

Oil prices are trading higher on Friday, but are set for a second consecutive week of declines due to disappointing U.S. economic data and uncertainty over further interest rate hikes, which weigh on the demand outlook. U.S. economic growth slowed more than expected in the first quarter, but jobless claims fell in the week ending April 22. Investors are concerned that potential interest rate hikes by central banks that are fighting inflation could slow economic growth and reduce energy demand in the United States, Britain, and the European Union. The U.S. Federal Reserve, Bank of England, and European Central Bank are all expected to raise interest rates at their upcoming meetings, and oil investors are eagerly awaiting guidance on the future direction of interest rates and the global economy. The Fed's meeting is scheduled for May 2-3. Russian Deputy Prime Minister Alexander Novak said on Thursday that the OPEC+ group does not see a need for further output cuts despite lower-than-expected Chinese demand, but the organization could always adjust its policy if necessary.

From a technical standpoint, price has more room to continue down toward the 77.00 territory followed by the 75.5  as down parallel of the bearish channel.

Support:77.00 – 75.50 – 73.00        Resistance: 79.00 – 80.00 – 81.00