Oil prices rebound as markets digest OPEC+ supply boost
On the New York fuel exchange, oil prices on Tuesday are recovering from a four-year low. According to brokers, technical indicators suggest that the earlier declines were exaggerated. Prices had dropped due to announcements of increased crude supplies by countries in the OPEC+ cartel.
Oil prices on the New York fuel exchange are beginning to rise after hitting a four-year low. A barrel of West Texas Intermediate for June delivery now costs $58.03, marking an increase of 1.58%.
Meanwhile, Brent crude on the ICE exchange for July delivery is priced at $61.19 per barrel, an increase of 1.59% following an earlier drop of nearly 10%.
U.S.-China trade war
At the beginning of the week, oil prices on world markets fell when the OPEC+ alliance countries decided to increase oil supplies by 411,000 barrels per day in June. Saudi Arabia, the leader of OPEC+, also warned about the possibility of further supply increases.
The rise in oil prices is occurring against the backdrop of the trade war between the U.S. and China, which affects global oil demand and consequently lowers the price of the resource.
Meanwhile, U.S. President Donald Trump expressed readiness to lower tariffs on Chinese goods, which are currently at 145%. China responded with tariffs set at 125%.
In an interview with NBC, Trump stated that he intends to lower the tariffs at some point, explaining that without such a move, doing business with China would be impossible—and noting that China is eager to engage in trade.
China is grappling with economic problems, as confirmed by data on factory activity, which is the weakest since 2023. New export orders fell to their lowest level since December 2022, marking the biggest drop in three years when the country was in a pandemic lockdown.
