Oil prices found some stability after a significant drop on Monday, as global markets adopted a cautious approach. This shift comes in light of President Donald Trump’s pointed remarks regarding the Federal Reserve and ongoing fears surrounding the US-China trade tensions.
Oil Price Trends
Following a decline of 2.5% in the previous session, West Texas Intermediate (WTI) futures hovered around $63 per barrel. In comparison, Brent crude managed to stay above $66.
- WTI for May delivery, set to expire on Tuesday, saw a slight increase of 0.8%, reaching $63.60 at 7:32 a.m. in Singapore.
- The more actively traded June contract rose by 0.9%, hitting $62.95.
- Brent crude for June settlement closed down 2.5% at $66.26 on Monday.
Trump’s Criticism of the Fed
President Trump intensified his critique of Federal Reserve Chair Jerome Powell, expressing concerns that the US economy could face a slowdown if interest rates remain unchanged. This criticism has led many investors to pull back from US stocks, bonds, and the dollar, contributing to the volatility in oil prices.
Trade War Concerns
The oil market’s decline is also influenced by escalating concerns over the potential consequences of a trade war between the United States and its key trading partners. This month, oil prices have plummeted, even reaching a four-year low at one point.
OPEC+ Production Increases
Adding to the market’s anxiety, OPEC+ has unexpectedly ramped up production, raising fears about oversupply. As traders navigate this turbulent landscape, the oil market remains on edge, balancing between hopes for recovery and the looming threats of geopolitical and economic instability.
In summary, as the situation evolves, both traders and investors will be keenly watching how these dynamics unfold and what impact they may have on oil prices in the near future.
