Oil prices rose slightly after a volatile week, as traders weighed progress in U.S.-China trade talks and potential OPEC+ production increases.
Uncertainty remains high: U.S. Treasury Secretary Scott Bessent noted some ongoing discussions with Asian partners, though conflicting signals persist between Washington and Beijing. Meanwhile, China reaffirmed its commitment to supporting economic growth, targeting a 5% expansion in 2025.
Oil markets are under pressure as concerns grow that trade tensions could stifle global demand. Brent crude is heading for its largest monthly loss since 2022. Additionally, OPEC+ may propose another output hike at its May 5 meeting, further weighing on sentiment.
Geopolitical risks are also in focus. The U.S. and Iran showed signs of progress in nuclear talks, though tensions remain high after a deadly explosion at Iran’s Bandar Abbas port, a critical oil transit hub.
Underlying market indicators are mixed: Brent’s near-term spread shows tight supply, but longer-term outlooks are less bullish. This week, investors will look for insights from oil majors like BP, Shell, Chevron, and ExxonMobil, as they release quarterly earnings.