Oil prices were rising more than 2% in early trading after tumbling in the previous session due to mounting concerns over a global supply glut.
Brent crude rose 2.2% to $61.57 a barrel, while WTI was up 2.3% to $58.44 a barrel, likely on technical rebound.
However, “the combination of increased output and softer global economic fundamentals offers little room for a meaningful price recovery in the near term,” said Tobias Keller, strategist at UniCredit.
The benchmarks have lost between 17% and 18% so far this year, as traders worry that OPEC+’s strategy shift could tip the market into surplus just as demand growth faces headwinds from sweeping trade tariffs.
“Unless global growth accelerates–a scenario closely tied to U.S. trade policy developments–oil prices are likely to remain under pressure for the remainder of 2025,” Keller said.