On Tuesday, oil prices are declining due to pressure from concerns over escalating trade tensions. Market participants are worried about the impact of increasing friction between the US and EU on economic activity and fuel demand.
Oil prices dropped nearly 4% during early Wednesday trading amid an escalating tariff standoff between the United States and China, Reuters reports. The prices hit the lowest level in more than 4 years, having fallen for five consecutive sessions.
A decrease of the indicator value may contribute to the rise in quotes of WTI, Brent.
Goldman Sachs analysts have warned of a possible decline in Brent oil prices below $40 per barrel by the end of 2026 under negative circumstances. Such a forecast is possible with a slowdown in global GDP growth and OPEC+ refusal to cut production.
Citi Research lowered its Brent crude price forecast for the next three months to $60 per barrel. The change in the outlook was driven by Donald Trump's new tariffs. Amid escalating trade tensions, oil prices fell by almost 4% earlier this week.
Oil surged by more than 1% on Tuesday, recovering from a significant sell-off that had impacted the energy market in recent sessions. The initial slump in prices was triggered by concerns over US trade tariffs, which could reduce fuel demand and lead to a global recession.
The oil options markets broke out of a months-long stupor last week after OPEC+ increased production amid a global economic downturn. As a result, oil prices plummeted to a four-year low, Bloomberg reports.
A decrease of the indicator value may contribute to the rise in quotes of WTI, Brent.
Shell anticipates lower-than-expected gas production in the first quarter 2025 due to unplanned maintenance at its Australian facilities. Shell forecasts integrated gas production of 910,000–950,000 barrels of oil equivalent.
Goldman Sachs again lowered its forecasts for the average annual price of Brent and WTI oil in 2026. The investment bank cited growing recession risks and the possibility of a larger-than-expected increase in supply from OPEC+.
Saudi Arabia, the world’s leading oil exporter, cut crude prices for buyers in Asia in May to a four-month low. The move was driven by the decision of OPEC+ to speed up the increase in oil output.
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Oil price movements are more than just charts on a screen. It is one of the key drivers of the global economy. Understanding these dynamics helps in making rational decisions and adapting to changes.
