Oil gains slightly on uncertain demand outlook

Reuters reports that oil gained in early trade on Monday. However, the prices remain constrained by uncertainty over trade negotiations between China and the US, as well as the prospect of OPEC+ raising production. 

Michael McCarthy, chief executive officer of online trading platform Moomoo, believes absence of news is pushing crude prices slightly up, as traders are to go short only ahead of potential increased output by OPEC+ after the meeting on May 5 and a significant production boost in the US. 

At the same time, concerns over oil surpluses and a slowdown in the global economy driven by US trade tariffs caused Brent and WTI to lose more than 1% last week.

Besides, the market has been shaken by conflicting comments from Beijing and US President Donald Trump over the progress in de-escalating the trade tensions, Reuters reports. Trump claimed that negotiations with China were underway, but Beijing said no talks were taking place.

Investors has also been watching negotiations between Iran and the US. Abbas Araqchi, Iranian Foreign Minister, said he was extremely cautious about the success of these talks.