FX.co ★ Oil Rebounds after 3-Day Drop

WTI crude futures rose above $58.5 per barrel on Thursday after initially dropping to a three-week low. This recovery was aided by a broader increase in US equity markets, fueled by robust technology sector earnings and indications that the Trump administration might relax its tariff threats. Earlier, oil prices had fallen by more than 2% due to concerns over demand and anticipated increased supply from OPEC+, with Saudi Arabia indicating that it can withstand lower prices and may advocate for heightened production at the meeting scheduled for May 5. Additional downward pressure emerged from rising oil production in non-OPEC countries, such as Guyana. Despite overall bearish sentiment, geopolitical tensions persist, as US lawmakers continue to push for stringent sanctions against Russia and maintain strict policies on Iranian and Venezuelan oil. On the demand front, weak economic indicators contributed to market uncertainty, including a contraction in US GDP and China's worst factory performance since 2023. Nevertheless, bullish signals emerged from inventory data, highlighting declines in US crude and gasoline stockpiles last week, which lent some support to oil prices.