Global oil markets extended their retreat this week, battered by a potent mix of rising inventories, fragile demand signals, and a fresh OPEC+ decision to open the taps wider than expected. Monday's session underscored how deeply the market remains gripped by bearish sentiment, as both Brent and U.S. West Texas Intermediate (WTI) crude benchmarks slipped to their lowest levels since early April.
Brent settled $1.06 lower at $60.23 a barrel, down 1.7%, while WTI plunged $1.20 or 2.02% to $57.11. The twin losses compound last week's sharp declines, where Brent tumbled 8.3% and WTI shed 7.5%, effectively wiping out the modest price optimism that had stemmed from earlier hopes of a U.S.-China tariff thaw.
Instead, attention has pivoted back to the supply side—where fears are growing louder. Over the weekend, the OPEC+ alliance, which includes Russia and other key non-OPEC producers, confirmed plans to hike output by 411,000 barrels per day (bpd) in June. That follows back-to-back monthly increases, bringing the combined three-month addition to 960,000 bpd—nearly half of the 2.2 million bpd cut introduced in 2022 to prop up prices.
But the move is not just about balancing supply. Analysts suggest Saudi Arabia, the bloc's de facto leader, is playing a deeper strategic game.
"Falling into this factor will be what is likely to be finite time for the initial Trump-era tariffs," said energy consultant Jim Ritterbusch. Data from analytics firm Vortexa reveals a build-up of nearly 150 million barrels in global crude stocks since mid-February.
Recession fears and poor refined fuel import activity are compounding the bearish outlook, suggesting a tough road ahead for oil markets.
