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Oil poised for weekly dip as recession fears, rates cloud outlook

28 April 2023 09:45 (UTC +04:00)

Oil prices posted mild gains on Friday, but headed for a second week of declines as disappointing U.S. economic data and uncertainty over further interest rate hikes weighed on the demand outlook, APA-Economics reports citing Reuters.

Brent crude futures for June rose 44 cents, or 0.6%, to $78.81 a barrel at 0400 GMT, while the more actively-traded July contract was up 47 cents, or 0.6%, at 78.69 a barrel.

U.S. West Texas Intermediate (WTI) crude was up 40 cents, or 0.5%, at $75.16 a barrel.

The U.S. Federal Reserve, the Bank of England and the European Central Bank are all expected to raise rates at their coming meetings. The Fed meets over May 2-3.

Oil investors are waiting for the Fed and other central bank decisions next week for guidance on the future direction of interest rates and the global economy, said Satoru Yoshida, a commodity analyst at Rakuten Securities.