Oil Prices Ease on Concerns Over Rising Supply

PUKMEDIA

Oil field.

Oil prices eased on Tuesday, 13 May 2025, retreating from a two-week high amid concerns over increasing supplies and uncertainty about the long-term prospects of a truce in the U.S.-China trade dispute, according to Reuters.

Brent crude futures fell by 11 cents, or 0.2%, to $64.85 per barrel by 0510 GMT, while U.S. West Texas Intermediate (WTI) crude declined by 8 cents, or 0.1%, to $61.87. Both benchmarks had risen around 1.5% on Monday, marking their highest closes since late April during a volatile period for global oil markets.

The temporary easing of trade tensions between the U.S. and China, following an agreement to suspend tariffs for 90 days, lifted Wall Street shares, the U.S. dollar, and crude prices earlier in the week. However, analysts at ING warned that “while a thawing in trade tensions between China and the US is helpful, there’s still plenty of uncertainty over what happens in 90 days,” which could continue to dampen oil demand.

In addition, growing supply levels were seen as a major factor behind the dip in prices. OPEC has increased oil output more than expected since April, with May production likely up by 411,000 barrels per day.

“Though demand has been a key concern for the oil market, supply increases from OPEC+ mean that the oil market will be well supplied through the remainder of the year,” ING analysts added. The extent of this supply will depend on whether OPEC+ proceeds with its plans for significant output increases in May and June.



PUKMEDIA