After a sharp six-day decline that dragged oil prices to their lowest since early 2021, the market staged a surprising rebound on Tuesday. Brent crude rose by 2.6% to \$61.80 per barrel, while West Texas Intermediate climbed 2.7% to \$58.66. This recovery, driven by technical trading and opportunistic buying, comes despite OPEC+ accelerating its output increases and persistent concerns over global demand amid escalating trade tensions.
OPEC+’s decision to boost production by 411,000 barrels per day in June, adding to the 960,000 bpd increase since April, was expected to exert downward pressure on prices. However, the psychological threshold of \$60 per barrel for Brent appears to have triggered buying interest, with investors viewing the dip as a buying opportunity.
The market’s resilience is further tested by the ongoing U.S.-China trade conflict. President Trump’s recent tariff announcements have raised fears of a global economic slowdown, potentially dampening oil demand. Analysts have adjusted their forecasts accordingly, with Goldman Sachs lowering its Brent crude outlook to \$60 per barrel for the remainder of 2025, citing increased supply and economic uncertainties.
Despite these challenges, some factors are providing support to oil prices. The return of Chinese buyers after a public holiday has contributed to increased demand, and Saudi Arabia’s modest cuts to official selling prices have also played a role.
Union Jack Oil plc (LON:UJO) is an oil and gas company with a focus on onshore production, development, exploration and investment opportunities within the United Kingdom and the United States of America hydrocarbon sector.
