Oil prices climbed about 3 per cent on Tuesday on signs of higher demand in Europe and China, lower production in the U.S., tensions in the Middle East and as buyers emerged the day after prices fell to a four-year low.
Brent futures rose $1.92, or 3.2 per cent, to settle at $62.15 a barrel, while US West Texas Intermediate (WTI) crude gained $1.96, or 3.4%, to close at $59.09.
Both benchmarks rose out of technically oversold territory, the day after posting their lowest settlements since February 2021 on a decision by OPEC+ to boost output.
“The market may be seeing some bottom fishing with a significant amount of profit taking out of short holdings, a major contributor to today’s price rebound,” analysts at energy advisory firm Ritterbusch and Associates said.
OPEC+, the Organization of the Petroleum Exporting Countries (OPEC) and allies like Russia, decided over the weekend to speed up oil production hikes for a second consecutive month.
“After evaluating the latest OPEC+ move to accelerate the easing of supply cuts, market players are focusing on developments in trade and the possibility ... that trade deals will be reached,” said Tamas Varga, an analyst at PVM, a brokerage and consulting firm that is part of TP ICAP.
The eight OPEC+ countries, which previously announced additional voluntary adjustments in April and November 2023, namely Saudi Arabia, Russia, Iraq, UAE, Kuwait, Kazakhstan, Algeria, and Oman met virtually on 3 May 3, 2025, to review global market conditions and outlook, according to an Opec press note
“In view of the current healthy market fundamentals, as reflected in the low oil inventories, and in accordance with the decision agreed upon on December 5, 2024, to start a gradual and flexible return of the 2.2 million barrels per day voluntary adjustments starting from April 1, 2025, the eight participating countries will implement a production adjustment of 411 thousand barrels per day in June 2025 from May 2025 required production level. This is equivalent to three monthly increments as detailed in the table below. The gradual increases may be paused or reversed subject to evolving market conditions. This flexibility will allow the group to continue to support oil market stability. The eight OPEC+ countries also noted that this measure will provide an opportunity for the participating countries to accelerate their compensation,” it said.
- With Reuters
