Oil prices have experienced a decline in Asian markets, influenced by increased production from OPEC+ members and apprehensions regarding potential tariffs that could impact global economic growth. Brent crude fell by 0.4% to $65.40 per barrel, while U.S. West Texas Intermediate dropped to $63.16.
Despite a previous 2% gain attributed to supply disruptions from Canadian wildfires and stalled U.S.-Iran nuclear deal talks, the market remains cautious. The planned output increases by OPEC+ and ongoing U.S.-China trade tensions contribute to this sentiment. Analysts note that while Canadian wildfires continue to affect supply, expectations for future oversupply persist, as reflected in the oil futures market structure.
The Organization for Economic Cooperation and Development (OECD) has downgraded its global growth forecast, citing the escalating economic toll of the trade war. This outlook further influences investor confidence in the oil market. The interplay between supply dynamics and geopolitical factors continues to shape oil price trajectories.