Particle.news
Download on the App Store
5 ARTICLES
·
last wk.

Oil Prices Decline as Saudi Arabia Signals Supply Hikes

Saudi Arabia's stance on maintaining low prices and potential OPEC+ output increases coincide with U.S. economic contraction, intensifying market pressures.

An oil tanker is being loaded at Saudi Aramco's Ras Tanura oil refinery and oil terminal in Saudi Arabia May 21, 2018. Picture taken May 21, 2018. REUTERS/Ahmed Jadallah/File Photo
Image
Image

Overview

  • Oil prices fell further on May 1, with Brent crude settling near $60.47 and WTI at $57.56, reflecting concerns over supply increases and weakening demand.
  • Saudi Arabia has indicated it will not support the oil market with supply cuts and is prepared for prolonged low prices, according to sources.
  • Several OPEC+ members are expected to propose accelerating production hikes for June during the group’s upcoming May 5 meeting.
  • The U.S. economy contracted for the first time in three years during Q1 2025, driven by tariff-related disruptions, raising fears of a global recession.
  • U.S. crude oil inventories fell by 2.7 million barrels last week, but this has offered limited support to prices given broader oversupply concerns.