Crude oil prices held mostly flat on Thursday, as strong U.S. equity performance—driven by major tech earnings—offset lingering fears about a slowing U.S. economy and rising OPEC+ output. A pause in U.S.-Iran talks and a drop in domestic stockpiles added complexity to the market outlook.
Modest Oil Movement Amid Volatility
West Texas Intermediate (WTI) crude slipped 15 cents (0.3%) to $58.04 per barrel, while Brent crude declined 18 cents (0.2%) to $60.90 by midday trading in New York. Earlier in the session, both benchmarks were down over 1%.
Investor sentiment in the oil market remains cautious, with analysts pointing to signals from OPEC+ that increased production may be approved during the upcoming meeting.
Economic Concerns Dampen Demand Expectations
U.S. GDP data showed a slight contraction in the first quarter—its first decline in three years. Combined with weaker consumer confidence, these signs have discouraged hedge funds from building long positions in crude, said Dennis Kissler of BOK Financial.
Additionally, concerns about demand are amplified by the unpredictability of President Donald Trump’s trade policy. A surge in imports, triggered by tariff fears, has disrupted growth and contributed to a complex global outlook.
Political Uncertainty Adds to Oil Market Headwinds
A senior Iranian official confirmed that planned U.S.-Iran talks in Rome were postponed, with rescheduling dependent on future U.S. engagement. Meanwhile, Saudi Arabia reportedly told partners it can tolerate a sustained period of lower prices and does not plan to support prices with new cuts.
Several OPEC+ members are reportedly pushing to accelerate production increases in June, which would mark a second consecutive month of output growth. A key meeting among eight producers is set for May 5.
U.S. Stockpile Decline Offers Temporary Support
The U.S. Energy Information Administration reported a surprise drop of 2.7 million barrels in crude inventories last week, defying analyst expectations for a 429,000-barrel increase. The fall was attributed to stronger export activity and increased refinery demand.
Despite this bullish data point, the broader outlook for oil prices remains clouded by economic instability, geopolitical risks, and supply-side pressure.
Will Oil Prices Break Out—or Stay Rangebound?
As OPEC+ deliberates its production strategy and the U.S. economy sends mixed signals, the energy market faces heightened uncertainty. Can strong corporate earnings keep oil prices afloat—or will macroeconomic headwinds pull them lower?
