Today’s markets analysis on behalf of George Pavel General Manager at Naga.com Middle East
Crude oil futures have continued to decline for the fourth consecutive session, pressured by OPEC+ plans to raise output in April and ongoing trade tensions. The production increase could contribute to a bearish outlook for global crude prices. OPEC+ recently announced plans to increase output by 138,000 barrels per day starting in April, marking the first step in unwinding nearly 6 million barrels per day in cuts implemented since 2022. While this move may stabilize supply, it risks adding more pressure on prices if demand does not pick up.
Moreover, higher tariffs on key oil suppliers could increase energy import costs, leading to higher gasoline prices in the U.S. This inflationary pressure could dampen consumer spending and fuel consumption, adding further strain on global crude prices. U.S. tariffs on Canada, Mexico, and China in addition to tariff threats on other economies have raised concerns over slower economic growth and weaker fuel demand. Furthermore, the risk of softening U.S. economic growth exacerbates the situation, keeping the oil market in a cautious state.