Oil Prices Begin the Week With a Dip

Irina Slav, a writer for Oilprice.com, reported on the recent decline in crude oil prices at the start of the week due to uncertainties surrounding the end of the conflict in Ukraine and potential reduced demand amid trade tensions. The ongoing negotiations between the United States and Iran on a nuclear deal also impacted the market sentiment.

As of the latest update, Brent crude was priced at $66.83 per barrel, while West Texas Intermediate was trading at $63.58 per barrel. Market analysts, such as IG’s Yeap Jun Rong, noted a prevailing bearish trend driven by concerns over global trade tariffs, OPEC+ supply increases, and economic growth constraints.

The imposition of tariffs has reshaped global trade dynamics, leading to a pessimistic outlook on crude oil demand, although some Asian importers are looking to purchase more U.S. oil to address trade imbalances and mitigate tariff risks.

Moreover, positive developments emerged from the recent U.S.-Iran talks in Rome, indicating progress in discussions and agreements on key principles and goals. OPEC+’s decision to boost daily oil supply by 411,000 barrels in May added pressure on prices, with calls for stricter enforcement of production quotas on non-compliant members like Iraq and Kazakhstan.

In summary, the oil market is navigating through various geopolitical and economic challenges that continue to influence price dynamics.