Oil Climbs as Economic Clouds Loom and OPEC+ Weighs Supply Increase

By Florence Tan

SINGAPORE (The News Pulse) – In early trading on Monday, oil prices edged higher yet continued to be weighed down by uncertainties surrounding the trade discussions between the U.S. and China. These negotiations have cast doubts on future global economic expansion and fuel consumption levels. Additionally, the potential increase in output from OPEC+ has further dampened market sentiment.

Brent crude futures along with U.S. West Texas Intermediate crude rose slightly for the third consecutive day, increasing by 9 cents each to reach $66.96 and $63.11 per barrel respectively by 00:25 GMT.

"The lack of updates is causing oil prices to edge up slightly, with traders currently holding short positions anticipating an increase in OPEC+ supplies following their May 5 meeting and a substantial rise in US production," said Michael McCarthy, CEO of the online trading platform Moomoo Australia.

Certain members of the Organisation of the Petroleum Exporting Countries and their partners, referred to as OPEC+, are anticipated to propose that the coalition ramp up oil production increases for a second successive month during their meeting on May 5th.

Oversupply expectations and worries over tariff effects on the worldwide economy led to Brent and WTI dropping by over 1% last week.

The markets have been shaken up by contradictory messages coming from U.S. President Donald Trump and officials in Beijing regarding the advancements being made to ease tensions in a trade conflict that poses a risk of draining momentum from worldwide economic expansion.

The most recent statement out of Washington came from U.S. Treasury Secretary Scott Bessent on Sunday, who did not endorse President Trump’s claim that discussions with China were ongoing. Previously, Beijing had refuted reports suggesting any such talks were happening.

A number of attendees at the International Monetary Fund and World Bank Spring Meetings noted that the Trump administration remained inconsistent in its requirements for trade partners subjected to his extensive tariff measures.

Investors are keeping an eye on the ongoing nuclear discussions between Iran and the US taking place in Oman this week. Iranian Foreign Minister Abbas Araqchi stated that he remains "highly wary" regarding the outcome of these talks.

In Iran, a massive blast occurred at the country’s largest port, Bandar Abbas, resulting in at least 40 fatalities and over 1,200 individuals sustaining injuries, as per reports from state media on Sunday.

On Sunday, high-ranking officials from the Trump administration urged both Russia and Ukraine to advance towards a peaceful resolution after Donald Trump met with Ukrainian President Volodymyr Zelenskiy for a bilateral discussion at the Vatican the previous day.

(Reported by Florence Tan; Edited by Sonali Paul)