Oil prices complete a week with a decline in the background of fears of overproduction and trade disputes between the US and China. The market prevails uncertainty, which is reflected in world quotations. On Friday, April 25, Brent oil futures dropped 1.31% and amounted to $ 65.68 a barrel. During the week, the Brent price fall was 3.3%. WTI oil contracts were 1.32%, reaching $ 61.96 per barrel, which also resulted from 4.2% a week.
The reduction of oil costs occurred because OPEC+ can provoke overproduction on the market. In addition, the uncertainty over the prospects for oil demand, in particular against the background of trade tensions between the US and China, contributed to the reduction of prices. The dollar's renewal has also contributed to reducing black gold.
Analysts say that oil prices have lost their recent rise after a representative of the Ministry of Foreign Affairs of China that China and the US do not negotiate on tariffs. This is contrary to US President Donald Trump's statements, who said the trade talks between Washington and Beijing the day before. Traders in the oil market now believe that the increase in oil prices in the short term is unlikely, given the continuation of the trade war and the possible acceleration of increasing oil production by OPEC+ in June this year.
According to analysts, in the short term, the oil market may remain unstable due to trade contradictions between the two largest economies of the world and the possible increase in oil production against global economic uncertainty.
