Oil prices take breather after selloff on supply worries
Oil prices edged higher on Thursday, steadying slightly after sharp losses on the previous day driven by signs Saudi Arabia could produce more, and as the U.S. economy contracted in the first quarter.

Brent crude futures rose 16 cents, or 0.3%, to $61.22 a barrel. U.S. West Texas Intermediate crude futures climbed 6 cents or 0.1%, to $58.27. WTI closed at its lowest since March 2021 on Wednesday.

Saudi Arabian officials are briefing allies and industry experts to say the kingdom is unwilling to prop up the oil market with further supply cuts and can handle a prolonged period of low prices, according to sources.

Several OPEC+ members will suggest the group accelerates oil output hikes in June for a second consecutive month, three sources familiar with OPEC+ talks told Reuters earlier in the month.

Moreover, the U.S. economy contracted for the first time in three years in the first quarter, swamped by a flood of imports as businesses raced to avoid higher costs from tariffs and underscoring the disruptive nature of President Donald Trump's often chaotic trade policy.

Trump's tariffs have made it probable the global economy will slip into recession this year, a Reuters poll suggested.

A demand outlook clouded by trade disputes between the U.S. and China coupled with OPEC+'s decision to unwind supplies will weigh on oil prices this year, a Reuters poll showed on Wednesday.

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A survey of 40 economists and analysts in April projected Brent crude to average $68.98 a barrel in 2025, down from March's estimate of $72.94. U.S. crude is expected to average $65.08 per barrel, lower than last month's $69.16 outlook.
U.S. crude oil stockpiles fell unexpectedly by 2.7 million barrels last week on higher export and refinery demand, the Energy Information Administration said on Wednesday, compared with analysts' expectations in a Reuters poll for a 429,000-barrel rise.

(This story has been corrected to say that WTI settled at its lowest since March 2021, not both contracts settled at their lowest in about four years, in paragraph 2, and fix the dateline to May 1)

Source: investing.com