Oil prices rebound amid OPEC+ supply surge and trade tensions
On the New York fuel exchange, oil prices on Tuesday are rebounding from a four-year low. Technical indicators suggest that the earlier declines were exaggerated, according to brokers. Prices had been reduced by announcements of increased crude supplies from countries in the OPEC+ cartel.
Oil prices on the New York fuel exchange are beginning to rise after plummeting to a four-year low. A barrel of West Texas Intermediate for June delivery currently costs $58.03. This reflects an increase of 1.58%.
Meanwhile, Brent crude on the ICE exchange for July delivery is priced at $61.19 per barrel, marking a 1.59% rise following an earlier decrease of nearly 10%.
U.S.-China trade war
At the start of the week, oil prices on world markets fell when the OPEC+ alliance countries decided to boost oil supplies by approximately 65,349,729 litres per day in June. Saudi Arabia, the leader of OPEC+, also warned of potential further increases in supply.
The rise in oil prices is occurring in the context of the trade war between the U.S. and China, which impacts global oil demand. Specifically, it reduces demand, consequently affecting the price of the resource.
In the meantime, U.S. President Donald Trump expressed his willingness to lower tariffs on Chinese goods from their current level of 145%. China responded with tariffs at 125%.
In an interview with NBC, Trump stated that he intends to lower the tariffs at some point, explaining that without such a move, doing business with China would be impossible—and noting that China is eager to engage in trade.
China is facing economic challenges, as evidenced by data on factory activity, which is at its weakest since 2023. New export orders dropped to their lowest level since December 2022, marking the largest decline in three years when the country was under pandemic restrictions.
