# Oil prices steady on uncertain global outlook and supply concerns
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2023-04-24
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: Oil prices hold steady amid global uncertainties
Meta Description: Stay updated on oil prices as concerns over interest rates, global economy, and supply pressures affect the market. Get insights on Brent and WTI crude prices
URL: https://financedigest.com/oil-prices-steady-on-uncertain-global-outlook-and-supply-concernshtml

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# Oil prices steady on uncertain global outlook and supply concerns

By Noah Browning

LONDON (Reuters) – Oil prices were steady on Monday as concern over rising interest rates, the global economy and the outlook for fuel demand were balanced by the prospect of tightening supplies.

Brent crude slipped 22 cents, or 0.3%, to $81.44 a barrel by 1135 GMT. U.S. West Texas Intermediate crude was down 13 cents, or 0.2%, at $77.74.

Both contracts fell more than 5% last week for their first weekly declines in five as U.S. implied gasoline [demand fell from a year](https://www.financedigest.com/food-fiber-market-to-exhibit-increased-demand-in-the-coming-years.html "Food Fiber Market to Exhibit Increased Demand in the Coming Years") earlier.

Weak U.S. economic data and worse than [expected corporate earnings from the technology sector sparked growth](https://www.financedigest.com/contract-caterer-compass-expects-2023-profit-growth-to-top-20.html "Contract caterer Compass expects 2023 profit growth to top 20%") concerns among investors, CMC Markets analyst Tina Teng said. The stabilising U.S. dollar and climbing [bond yields](https://www.financedigest.com/euro-zone-bond-yields-fall-as-ecb-policymaker-flags-recession-risk-gilts-eyed.html "Euro zone bond yields fall as ECB policymaker flags recession risk, gilts eyed") are also adding pressure on commodity markets, she added.

[Central banks from the United States to Britain and Europe are all expected to raise interest rates](https://www.financedigest.com/global-central-banks-extend-rate-hike-push-in-november.html "Global central banks extend rate hike push in November") when they meet in the first week of May, seeking to tackle stubbornly high inflation.

China’s bumpy economic recovery after the COVID-19 pandemic is also clouding the [oil demand](https://www.financedigest.com/oil-rises-on-tight-supplies-trade-choppy-on-demand-worries.html "Oil rises on tight supplies; trade choppy on demand worries") outlook, though Chinese customs data showed on Friday that the world’s top crude importer brought in record volumes in March. China’s [imports from leading suppliers Russia and Saudi](https://www.financedigest.com/india-eases-russian-oil-buying-in-july-boosts-saudi-imports-trade.html "India eases Russian oil buying in July, boosts Saudi imports -trade") Arabia topped 2 million barrels per day (bpd) each.

Refining margins in Asia, meanwhile, have [weakened on record](https://www.financedigest.com/ikea-reports-record-sales-as-price-hikes-offset-weakening-consumer-confidence.html "IKEA reports record sales as price hikes offset weakening consumer confidence") production from top refiners China and India, curbing the region’s appetite for Middle East supplies loading in June.

Yet analysts and traders remained bullish about China’s [fuel demand](https://www.financedigest.com/oil-falls-on-concerns-economic-slowdown-may-dent-fuel-demand.html "Oil falls on concerns economic slowdown may dent fuel demand") recovery towards the second half of 2023 and potential supply tightness owing to additional supply cuts planned by the OPEC+ producer group from May.

Planned output [cuts by the OPEC+ alliance and a strong demand outlook from China could provide a fillip to prices](https://www.financedigest.com/uk-home-asking-prices-rise-tax-cuts-to-spur-demand-rightmove.html "UK home asking prices rise, tax cuts to spur demand: Rightmove") in the coming days”, said independent oil analyst Sugandha Sachdeva.

Brent is likely to find key [support around](https://www.financedigest.com/engineering-pipe-hanger-and-support-market-estimates-the-to-expand-at-around-4-8-cagr-from-2021-to-2031-2.html "Engineering Pipe Hanger and Support Market Estimates The To Expand At Around 4.8% CAGR from 2021 to 2031") $79 a barrel, while for WTI crude support is aligned at $75,” she said.

(Reporting by Noah Browning; Additional reporting by Florence Tan in Singapore and Mohi Narayan in New Delhi; Editing by David Goodman)


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