Oil Slips as OPEC+ Sets New Production Goals Amid Trade Worries

15:16 ET - Crude oil futures close lower following gains over the past two days, hindered by worries regarding impending production hikes from OPEC+ and unclear prospects for US-China trade negotiations. According to a statement from Razan Hilal at Forex.com, OPEC+ might reduce their current output restrictions despite potential short-term volatility in prices as they prepare for long-term benefits when trade agreements come through. However, "lasting improvement will probably depend on advancements in trade discussions and favorable economic indicators." West Texas Intermediate drops 1.5%, closing at $62.05 per barrel, while Brent decreases similarly by 1.5% settling at $65.86 per barrel. anthony.harrup@wsj.com )

Crude Oil Drops Due to Trade Issues and OPEC+ Worries

14:12 GMT - Crude oil prices dropped by approximately 1% during European afternoon trading as investors assessed new geopolitical events alongside potential increases in output from OPEC+ countries. According to experts at ING, "The current uncertainty surrounding the fluctuating dynamics between the U.S. and China trade negotiations is causing hesitation among market players." Persistent worries regarding how import duties might affect worldwide economic health remain central to investment attitudes; moreover, an intensification of production levels by OPEC+ nations come next month may add additional complexity to financial projections. Brent crude has decreased by around 1%, now valued at $65.13 per barrel, whereas West Texas Intermediate (WTI) stands roughly 0.9% below previous marks at $62.42 per barrel. Nonetheless, recent political tensions have escalated due to a significant blast occurring within Iran’s strategic Bandar Abbas port—a crucial location near the vital oil shipping lane known as the Strait of Hormuz. giulia.petroni@wsj.com )

Crude Oil Futures Hold Steady Amid Rangebound Activity

0945 ET – Crude futures have remained relatively stable at the beginning of this week, with attention focused on OPEC’s output strategies and monitoring ongoing U.S.-Iranian nuclear discussions which might increase supply should an accord be struck and economic restrictions lifted. "Positively," notes Dennis Kissler from BOK Financial, "China remains voracious for international crude oil since its major refineries are operating above capacity levels not seen in more than twelve months." The West Texas Intermediate (WTI) has risen marginally by 0.1%, trading at $63.07 per barrel, whereas Brent shows a similar uptick of 0.1%, priced at $66.92 a barrel. anthony.harrup@wsj.com )

Uncertainty Surrounding OPEC+ Affects Oil Price Prospects

0942 GMT - The uncertainty regarding OPEC+'s scheduled production boost in June and increasing worries about the coalition's cohesion pose substantial downward risks to the oil sector, according to Aldo Spanjer, who heads up BNP Paribas' energy strategy division. Reports indicate that Kazakhstan plans to put national interests ahead of adhering to production limits, leading BNP not to anticipate the nation cutting back on output to offset excess production levels. This situation might result in an even bigger surge in OPEC+ supplies during June, adding pressure to weaken the market further. "This represents our biggest concern within the current scenario," Spanjer states, "with rising threats to the solidarity among OPEC+" members. BNP projects Brent crude prices to hover above $60 per barrel through Q2 and reach approximately $70 by Q3. They estimate that Brent should stabilize around $65 by year-end. At present, Brent has dipped slightly by 0.2%, trading at $65.65. giulia.petroni@wsj.com )

Oil Forecast Muddied by Trade Discussions, OPEC+ Production Doubts

0737 GMT - Oil prices show slight gains; however, ongoing uncertainties regarding trade discussions and potential increases in OPEC+ production keep casting doubt on the broader market perspective. During initial European trades, Brent crude and West Texas Intermediate (WTI) each climb by 0.2%, reaching $65.92 and $63.18 per barrel, correspondingly. Worries persist concerning diminished worldwide demand fueled by tensions from the U.S.-China trade conflict, compounded by ambiguous indications around the state of their negotiations. "A pact between the U.S. and China still seems distant," according to ANZ Research analysts. Additionally, the OPEC+ coalition plans an upcoming virtual conference aimed at addressing output limits scheduled for May. Market participants remain attentive towards U.S-Iranian dialogue focused on nuclear issues expected later this week, along with efforts toward achieving stability through negotiation for a resolution in Ukraine after President Trump met individually with President Zelensky within the premises of the Vatican on Saturday. giulia.petroni@wsj.com )

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