Daily Analysis UKOIL 4 May 2023

Oil prices experienced a slight recovery after reaching a 16-month low on Wednesday, but investors remain cautious about the outlook for crude due to continued volatility. Brent rose by 1.2% to $73.16 a barrel, following a 4% decline in the previous session. Ole Hansen, head of commodity strategy at Saxo Bank, explains that Russian oil exports have remained robust, while China's demand for crude has recovered slower than expected. West Texas Intermediate futures initially plummeted by up to 7.2% at the beginning of trading due to concerns that a possible US recession would harm demand. However, the significant decline was reduced and eventually reversed by mid-morning in Asia. In the US, a recent government report showed a contraction in gasoline demand, increased fuel supplies, and decreased jet fuel demand, which remains slightly above last year's levels.

Support: 74.00 – 73.00 – 71.00        Resistance: 75.60 – 77.00 – 78.50