Oil experiences a slight increase, even amid an unclear economic forecast and the possibility of an OPEC+ supply increase. Oil prices experienced a modest uptick in early trading. Nevertheless, uncertainties surrounding trade discussions between the U.S. and China persist, exerting pressure on the market. The possibility of OPEC+ potentially augmenting supply contributes to the prevailing pessimism. Conflicting signals from Donald Trump and Beijing concerning trade progress are also influencing the market.
Oil prices experienced a slight increase in early trading on Monday; however, they continued to be hindered by uncertainty surrounding trade negotiations between the U.S. and China, which is casting a shadow over the global growth and fuel demand outlook. Additionally, the potential for OPEC+ to raise its supply adds to the prevailing pessimism. Brent crude futures and U.S. West Texas Intermediate crude experienced a modest increase for the third consecutive session, rising by 9 cents by 0025 GMT to $66.96 and $63.11 a barrel, respectively.
“The lack of news is causing oil prices to rise modestly as traders maintain short positions in anticipation of a possible increase in OPEC+ supply from the May 5 meeting and a notable production increase in the USA,” Michael McCarthy serves as the chief executive officer of the online trading platform Moomoo Australia. Some members of the Organization of the Petroleum Exporting Countries and their allies, known as OPEC+, are anticipated to propose that the group increases oil output for a second consecutive month during their meeting on May 5.
Anticipations of an oversupply situation, coupled with apprehensions regarding the effects of tariffs on the global economy, led to a decline in Brent and WTI prices by over 1% last week. The market has experienced turbulence due to contradictory messages from U.S. President Donald Trump and Beijing regarding the advancements in de-escalating a trade war that poses a risk to global growth.
In a recent statement from Washington, U.S. Treasury Secretary Scott Bessent on Sunday refrained from endorsing Trump’s claim that negotiations with China were in progress. Previously, Beijing refuted the notion that any discussions were occurring. Numerous attendees at the International Monetary Fund and World Bank Spring Meetings indicated that the Trump administration remained at odds regarding its expectations from trading partners affected by his extensive tariffs.
Investors are closely monitoring the ongoing nuclear discussions between Iran and the United States in Oman, which are set to continue this week. Iranian Foreign Minister Abbas Araqchi expressed that he remained “extremely cautious” regarding the prospects of the negotiations’ success. In Iran, a significant explosion at its largest port of Bandar Abbas has resulted in the deaths of at least 40 individuals, with over 1,200 others reported injured, according to state media on Sunday.
On Sunday, senior figures within the Trump administration urged both Russia and Ukraine to advance negotiations for a peace agreement, following a private meeting between Trump and Ukrainian President Volodymyr Zelenskiy at the Vatican the previous day.