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.