Aussie rises after inflation data

Global oil prices fell in European trade on Wednesday on track for the third loss in a row, plumbing three-week lows on grim outlook for global demand due to Trump’s tariffs, and after a surge in US crude stocks.

Global oil prices are heading for their biggest monthly loss in four days as the US-China trade escalated, while OPEC+ heads for more production hikes, and with prospects of a US-Iran nuclear deal that could unleash more supplies to the markets.

Prices

US crude prices fell 1.55% today to $59.22 a barrel, the lowest since April 10, with a session-high at $60.39.

Brent  fell 1.6% today to $62.16 a barrel, the lowest since April 9, with a session-high at $63.28.

On Tuesday, US crude lost 2.8%, while Brent shed 2.35%, the second loss in a row on global demand concerns.

Global Demand 

PVM analysts told Reuters that the trade war between the US and China still dominates investor sentiment and is still the biggest mover for oil prices.

They added that other factors, such as US-Iran nuclear talks and OPEC+ production plans are also impacting prices, but by a smaller degree than trade concerns.

Otherwise, Reuters reported that oil tankers are lining up near an old port in western Venezuela to load shipments before the expiry of the US shipping license to local and international companies by the end of May.

US Stocks

Initial data from the American Petroleum Institute showed a buildup of 3.8 million barrels in US crude stocks last week, passing estimates of a 0.4 million barrels build.

Now traders await official data from the EIA later today, expected to show a drawdown of 0.6 million barrels. 

Monthly Trades

In April, oil prices fell over 15% on track for the heftiest monthly loss since November 2021.

Oil prices recently hit four-year lows as the US-China trade war escalated.

The OPEC+ organization is also expected to hike production once more in June after an already large scheduled increase in May.