Oil prices have significantly dropped on Monday, continuing last week’s trend of volatility. Investors are evaluating the combined effects of U.S. tariffs on global demand along with increased OPEC+ output and advancing negotiations in U.S.-Iran nuclear discussions.

Current Price Overview

• Brent Crude: down $1.10 (1.6%) to $66.86 per barrel.

• WTI: down $1.11 (1.7%) to $63.57 per barrel.

Key Influences

• Concerns Over Demand: Investors are wary that current tariffs may curb economic activity and, as a result, fuel consumption growth.

• OPEC+ Supply Decisions: The producer group is expected to increase output by 411,000 barrels per day starting in May, adding pressure on global oil balances.

• U.S.-Iran Negotiations: Developments in discussions aimed at reaching a nuclear deal have mitigated fears regarding supply disruptions.

• Rising Recession Probability: A recent Reuters survey indicates a near 50% chance of a recession in the U.S. over the next year, impacting overall market sentiment.

Upcoming Focus Areas

• U.S. Economic Data: Fresh PMI readings in manufacturing and services will shed light on how tariffs are affecting economic momentum and fuel demand.

• OPEC+ Monitoring: Any unexpected changes in output agreements could prompt rapid price fluctuations.

• Policy Insights: Increased commentary from the Fed or the White House regarding tariffs will also be key for market movements.

Track Essential Economic Updates

Stay informed about major macroeconomic releases that could shape oil demand forecasts.

As tariffs impact demand expectations and supply dynamics evolve, traders will have to navigate through a complex interplay of data and policies.