Lagos — Crude oil futures continue to slide following OPEC+’s decision to increase output by 138,000 barrels per day in April and the uncertainty surrounding U.S. tariffs.
The decision to unwind previous production cuts raises concerns about potential oversupply. With increased output, global crude prices face downward pressure, particularly if demand growth fails to match the rise in supply.
Furthermore, geopolitical factors, such as peace talks in Europe, could lead to an easing of sanctions on Russia and reducing disruption risks, potentially adding more oil to the market. This could weigh on prices over the medium to long term.
U.S. tariffs on Canadian and Mexican imports, including energy products, could further dampen economic activity and reduce fuel demand, exerting additional downward pressure on oil prices.
Reduced demand from these key markets coupled with global economic uncertainty could weigh on the outlook for crude.
*Joseph Dahrieh, Managing Principal at Tickmill
This article was originally posted at sweetcrudereports.com
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