Crude Oil Prices Edge Higher Amid Trade and OPEC+ Developments

Crude oil prices have risen slightly due, to trade discussions and expectations surrounding OPEC+.

On Monday morning there was an increase, in crude oil prices as the energy markets showed some stability moving forward cautiously into the week. ICE Brent futures rose past the $67, per barrel mark driven by sentiment surrounding trade talks and the upcoming OPEC + production negotiations.

Trade talks, between the United States and China continue to be a point of interest for observers and stakeholders alike as uncertainty persists in the market affecting commodity prices due to the lack of clear direction leading traders to closely monitor news updates for any definitive cues on the ongoing negotiations. Furthermore, the ongoing developments in the U.S.-Iran talks are adding dimensions to supply predictions stirring a sense of anticipation among market participants. As discussions continue in Europe with meetings scheduled ahead traders should be prepared for shifts, in market sentiment that could impact trading decisions.

There is growing focus, on the meeting scheduled for May 5th where discussions will revolve around production levels for June. Recent data indicates an outlook as speculators have increased their long positions in both ICE Brent and NYMEX WTI for the second consecutive week. Long positions in Brent oil saw a rise of 29,432 contracts while WTI experienced an increase of 36,132 contracts. The net long position for WTI is now at its peak since January reflecting a growing confidence, in the sustainability of price gains.

The rise was confirmed by data, from the U.S. showing an increase, in oil drilling activity for the week in a row according to a Baker Hughes report released recently. The number of oil rigs saw a rise of two units to reach 483 as of April 25th compared to the year’s figures indicating promising signs of recovery. Moreover, the “Frac spread count” also showed growth by adding five points and reaching 205. Suggesting that there might be a supply response if prices continue to stay strong.

Traders are likely to follow news and updates from OPEC+. Being attentive and keeping informed could be crucial, for those entering the energy market in the days.