Oil Holds Steady After Worst Monthly Loss Since 2021

Oil prices stabilize near multi-year lows amid rising OPEC+ output and global demand pressures.

Topic

Prices

Market Outlook

Prices

Price Movement

Oil prices showed little change after recording their biggest monthly drop since 2021.
West Texas Intermediate (WTI) traded around $58 per barrel after falling 3.7% on Wednesday,
while Brent crude held near $61.

OPEC+ Role

The recent decline comes as signs point to an extended phase of increased output from the OPEC+ alliance.
In its latest meeting, the group decided to raise production by more than
previously forecasted—adding approximately 411,000 barrels per day starting in May,
the equivalent of three months’ worth of planned hikes.

Saudi Arabia’s Stance

According to Reuters, Saudi officials told their OPEC+ partners and industry analysts
that the Kingdom is prepared to withstand low oil prices for an extended period,
reinforcing expectations that supply increases will continue without reversal.

Global Slowdown

Data released Wednesday showed the U.S. economy contracted for the first time since 2022,
while China’s industrial activity slumped to its lowest level since December 2023.
Even though U.S. crude and gasoline inventories declined last week, the figures weren’t enough to lift prices.

Market Outlook

Investors are closely watching the next OPEC+ meeting on May 5,
with a J.P. Morgan note suggesting an increasing likelihood that
the group could accelerate the return of supply to the market to match shifting demand and geopolitical pressures.

Demand Challenges

Meanwhile, expectations for global oil demand are under pressure,
with fading hopes of a breakthrough in U.S.-led trade talks weighing heavily on market sentiment.

Economic Pressures

Trade tensions have further strained oil prices,
especially after President Donald Trump announced higher tariffs in early April
—raising fears of a broader global trade war and widespread economic slowdown.

Flat Demand

According to Morgan Stanley, global oil demand remained unchanged in April at 102 million barrels per day,
the same level as the previous year—despite earlier forecasts of a 500,000 bpd increase.

Oil Holds Steady After Worst Monthly Loss Since 2021

Oil Holds Steady After Worst Monthly Loss Since 2021

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