NEW DELHI — Oil prices steadied on Thursday a day after a steep decline triggered by signs that Saudi Arabia, the world’s biggest crude exporter, may raise output and data showing a contraction in the economy of the US, the world’s biggest oil consumer.
Brent crude futures fell 6 cents, or 0.1 percent, to $61 a barrel. US West Texas Intermediate crude futures fell 12 cents or 0.2 percent, to $58.09. WTI closed at its lowest since March 2021 on Wednesday.
“In the near term, the path of least resistance remains tilted to the downside,” said Sugandha Sachdeva, founder of SS WealthStreet, a New Delhi-based research firm.
“The dual impact of deteriorating demand and looming supply expansion has created a pessimistic outlook for crude, with Brent crude appearing vulnerable to test $55 per barrel,” Sachdeva said.
Saudi Arabia is telling allies and industry experts that it is unwilling to prop up the oil market with supply cuts and can manage a prolonged period of low prices, sources told Reuters.
Several OPEC+ members will suggest the group accelerates output hikes in June for a second consecutive month, three people familiar with OPEC+ talks have said. Eight OPEC+ countries will meet on May 5 to decide a June output plan.
“Any surprise in the pace or scale of production adjustments could significantly influence volatility in the sessions ahead,” Sachdeva said.
