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Oil is heading for a weekly loss of over 2% as oversupply fears and shaky demand outlooks weigh heavily on the market. Analysts from LSEG highlighted persistent concerns about rising OPEC+ output and a stronger U.S. dollar adding further pressure to prices. Recent suggestions that OPEC+ could accelerate production hikes as early as June have fueled bearish sentiment.<\/p>\n
Hopes for a thaw in U.S.-China trade relations were dashed when China\u2019s foreign ministry denied any active tariff talks, contradicting earlier claims by President Trump. This reversal triggered a pullback in oil prices as traders recalibrated demand expectations. Despite Beijing\u2019s move to exempt some U.S. imports from punitive tariffs, fears around weakening global demand remain front and center.<\/p>\n
Progress between the U.S. and Russia over ending the Ukraine war has raised speculation about a potential easing of sanctions. If Russian oil flows return to the market, the global supply picture could become even heavier, adding to the bearish tone. As one of the largest producers within OPEC+, Russia\u2019s potential comeback is closely watched by energy traders.<\/p>\n
With no immediate bullish drivers and supply-side risks mounting, the near-term oil prices forecast remains bearish. Traders should be prepared for a potential retest of $59.67 if sentiment continues to sour, especially if OPEC+ moves forward with production increases and trade war tensions escalate further.<\/p>\n