Oil prices continued their downward trend, pressured by persistent concerns over weakening global demand and the absence of a resolution in key geopolitical and economic negotiations.
Brent crude fell 1.3% to $63.95 a barrel, while West Texas Intermediate (WTI) also dropped 1.3% to $61.20 a barrel, extending losses from the previous trading session.
Analysts at ANZ Research cited deteriorating economic indicators as contributing to the bearish sentiment. “The Dallas Fed’s gauge of Texas manufacturing activity weakened significantly in April,” they noted. “This came as the prospect of a relatively quick resolution to the trade war between the U.S. and China was snuffed out.”
Expectations that OPEC+ could increase production levels in June have also added downward pressure to prices. Traders are increasingly concerned that any boost in supply could outpace demand, particularly as economic data continues to underwhelm in major markets.
In addition to trade tensions, market participants are keeping a close watch on geopolitical developments, including ongoing negotiations surrounding the war in Ukraine and nuclear talks between the U.S. and Iran. Both issues carry potential implications for oil supply and market stability.
With no clear catalysts for a rebound, the outlook for oil remains fragile as traders weigh a murky demand picture against potential supply increases.
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