Oil Prices Rebound Over 1% After Six-Day Slump, But Surplus Concerns Linger

Oil prices rose on Tuesday, recovering slightly from sharp losses in the previous session as traders took advantage of lower prices and returning Chinese markets supported buying sentiment.

• Brent crude rose $0.92 to $61.15 a barrel by 03:09 GMT.
• WTI crude gained $0.89 to $58.02 a barrel.

Key Drivers:

• Monday’s steep losses were triggered by OPEC+’s decision to accelerate production hikes for a second consecutive month, raising concerns about an oversupplied market.
• Oil has now fallen more than 10% in six sessions and over 20% since April, when U.S. President Donald Trump’s tariff moves spooked global markets.
• Chinese traders returned from a five-day May Day holiday, adding liquidity and support.
• U.S. services data showed improvement, with the ISM services PMI rising to 51.6 in April from 50.8 in March, supporting optimism over demand in the world’s largest oil-consuming nation.

Looking Ahead:

• The Federal Reserve is expected to keep interest rates steady on Wednesday amid heightened global economic uncertainty.
• Barclays cut its Brent forecast by $4 to $70 for 2025, citing trade tensions and OPEC+’s shift in strategy. Its 2026 forecast was lowered to $62 a barrel.