Oil prices rebounded from a three-day losing streak, settling near $72 a barrel after OPEC+ delegates indicated that the group may delay planned supply increases set for April.
This would mark the fourth time the Saudi Arabia-led group has postponed efforts to boost output. The decision has eased concerns about a potential supply surplus this year. The International Energy Agency forecasts an oversupply of 450,000 barrels per day, and US inventories have reached a three-month high. Additionally, one indicator of market tightness is signaling oversupply.
Oil prices have fallen since the inauguration of US President Donald Trump, as his tough stance on issues like trade and foreign policy has weighed on the market, pushing prices to their lowest levels since 2025. Money managers have reduced their net bullish positions on crude, and market indicators, such as time spreads, suggest weakness.
A new bearish factor for crude emerged on Tuesday, as the US and Russia agreed to form teams to negotiate an end to the war in Ukraine. Russia’s 2022 invasion led to sanctions on its oil industry, and a peace agreement could result in those restrictions being lifted, increasing global supply.
In the short term, however, disruptions to Kazakh oil flows through a key export pipeline may limit supply in the region.
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