At 10:53 GMT, Light Crude Oil Futures are trading $58.93, down $0.31 or -6.52%.
OPEC+ Output Plans and US-China Tensions Pressure Sentiment
Crude prices are on track for a 7% weekly loss, reflecting mounting concerns over weaker global demand. Traders remain cautious ahead of a key OPEC+ meeting set for May 5, where several members are expected to push for accelerated production hikes into June. Reports suggest Saudi Arabia is signaling no intent to support prices with fresh supply cuts, further adding pressure to the downside.
On the demand front, skepticism persists around potential US-China trade negotiations. China’s Commerce Ministry said it was evaluating a US proposal to resume tariff discussions, but analysts warn the trade environment remains volatile and uncertain.
Lingering trade disputes between the world’s top two economies are viewed as a major drag on global growth and oil consumption forecasts.
Geopolitical Risks Offer Only Temporary Support
While supply concerns stemming from U.S. policy toward Iran have occasionally sparked short-covering rallies, they have failed to provide sustained price support.
President Trump reiterated that all purchases of Iranian oil or petrochemicals must cease immediately, threatening secondary sanctions on any violators.
