Oil prices stabilized on Thursday following a sharp midweek decline. The dip came as Saudi Arabia signaled it may boost production and new data revealed a slowdown in the U.S. economy.
Brent crude futures slipped by 6 cents to $61 per barrel. U.S. West Texas Intermediate (WTI) dropped 12 cents to $58.09 per barrel. On Wednesday, WTI closed at its lowest point since March 2021.
The market’s focus remains fixed on uncertainty in oil supply and demand. Saudi Arabia, the world’s largest crude exporter, appears ready to maintain or even increase output. The Kingdom is reportedly willing to withstand prolonged low prices without intervening to support the market.
OPEC+ members are set to meet on May 5. Sources say several countries will push for a faster pace of output increases in June. If approved, this would be the second consecutive monthly hike.
Sugandha Sachdeva, founder of SS WealthStreet, said downward pressure on oil prices is likely to persist. “The combination of weak demand and possible supply growth points to more losses,” she said. Brent could test the $55 mark if bearish trends continue.
Adding to market concern, the U.S. economy shrank in Q1 for the first time in three years. Businesses increased imports to avoid higher tariffs, further disrupting the trade balance. Analysts blame trade policies under President Donald Trump for the uncertainty.
The Reuters April poll also reflected concern. It projected Brent crude to average $68.98 in 2025—down from $72.94 in March. U.S. crude is expected to average $65.08, also below previous estimates.
Kpler, an analytics firm, cut its 2025 oil demand growth forecast. It now expects growth of 640,000 barrels per day, down from 800,000. The firm cited uncertainty in oil supply and demand, driven by U.S.–China tensions and soft demand in India.
Still, there are short-term signs of strength. U.S. crude inventories fell by 2.7 million barrels last week. Analysts had expected a rise of 429,000 barrels, according to a Reuters poll. Increased refinery activity and exports contributed to the drop.
Sachdeva noted that “any surprise in production decisions could spark price swings in the coming days.”
Despite recent volatility, uncertainty in oil supply and demand remains the core issue facing markets. As OPEC+ prepares for its May meeting, investors will watch closely for clues on future output plans.
