From Yahoo Finance: 2025-05-30 07:35:00

Analysts have lowered oil price forecasts for the third month in a row due to OPEC+ supply growth and trade dispute concerns. Brent crude is predicted to average $66.98 in 2025, down from April’s $68.98 estimate, while U.S. crude is expected at $63.35, lower than last month’s $65.08 forecast, according to a Reuters poll.

Trade tensions could weaken oil demand despite easing U.S. relations, with OPEC+ production decisions and geopolitical risks also impacting prices, says UniCredit analyst Tobias Keller. Eight OPEC+ members have increased output cuts by 411,000 bpd for May and June, with potential for a similar hike in July to address non-compliance.

Global oil demand is expected to rise by 775,000 bpd in 2025, driven by resource nations due to constrained consumption in the U.S. and China, according to analysts. Economic uncertainty, trade tensions, and the shift to electric mobility are key concerns, with potential for lower prices if Russian sanctions are lifted.

Russia’s conflict in Ukraine adds a geopolitical risk premium for oil, although markets have largely priced in this uncertainty. Efforts to de-escalate tensions and lift Russian oil sanctions could further impact prices, according to analysts.



Read more at Yahoo Finance: Oil price outlook weakens on OPEC+ hikes, lingering trade concerns