Oil prices remain under supply hike pressure

Oil extended losses on May 16 as supply is set to increase, driven by OPEC+ production hikes and a potential deal between Iran and the US. 

Brent crude prices lost 0.28% and traded at $64.34 per barrel. WTI fell 0.34% to $61.41 per barrel. 

Both grades dipped more than 2% in the previous trading session after a sell-off amid the prospect of the Iran nuclear deal.   

ING analysts note the deal would lift restrictions on the country, allowing it to raise its crude output by 400,000 barrels per day and find more interested buyers for its oil.

BMI cites the uncertain impact of US trade policy on oil prices. The company maintained its forecast for Brent at $68 per barrel this year and at $71 per barrel in 2026, lower than last year’s average of $80 per barrel. 

On Thursday, the International Energy Agency (IEA) revised its 2025 global supply growth outlook upwards by 380,000 barrels per day on the back of Saudi Arabia and other OPEC+ countries unwinding production cuts. The agency expects a surplus next year.