“OPEC+ has made an opportunistic move by boosting supply in May, capitalising on the expected stagnation in non-OPEC production. With potential supply disruptions stemming from sanctions and tariffs — on both sellers and buyers — oil prices are unlikely to stay below US$70 for long,” says Mukesh Sahdev, Rystad Energy’s global head of commodity markets (oil).
Oil markets have responded to two key developments: the announcement of US President Donald Trump’s “Liberation Day” tariffs and decisions made following yesterday’s Organization of the Petroleum Exporting Countries Plus (OPEC+) meeting, which signalled an expected increase of 411,000 barrels per day (bpd) in May supply from eight member countries.
Brent crude fell 4% in early trading on April 4, dropping below US$70 ($93.44) per barrel; a US$5 per barrel correction from earlier levels.
