FX.co ★ Oil Steady After Biggest Monthly Drop Since 2021

On Thursday, WTI crude oil futures settled at approximately $58.2 per barrel. This stabilization follows the most significant monthly downturn since 2021, prompted by heightened concerns of an impending increase in oil supply from OPEC+, led by Saudi Arabia. Market apprehensions are further fueled by the ongoing global trade tensions, which have dampened demand. Saudi Arabia has reportedly communicated to allies and industry experts that it does not intend to prop up the market by reducing output, indicating it is prepared to withstand an extended period of depressed prices. This has bolstered expectations for a potential announcement of increased production by OPEC+ at their forthcoming meeting on May 5. Compounding market unease, the U.S. economy recorded its first quarterly contraction in three years during Q1, underscoring the disruptions caused by President Donald Trump’s assertive trade strategies. In contrast, a larger-than-anticipated drawdown in U.S. crude inventories last week offered some price support.