Oil prices drop on global economic uncertainty and rate hike fears.

Oil prices fell over 1% due to concerns about rising interest rates, the global economy, and fuel demand, outweighing support from the prospect of tighter supplies on OPEC+ supply cuts. Weak US economic data and disappointing corporate earnings from the tech sector sparked growth concerns and risk aversion among investors. Central banks from the US to Europe are expected to raise interest rates in May to tackle stubbornly high inflation. China's bumpy economic recovery from COVID-19 also clouded its oil demand outlook. Nevertheless, analysts and traders remained bullish about China's fuel demand recovery towards the second half of 2023 and as additional supply cuts planned by OPEC+ from May could tighten markets.