WTI falls toward $57.00 due to concerns over OPEC+ supply increase, weakening demand

• WTI has dropped to a three-week low, pressured by fears of a potential supply boost from the Saudi-led OPEC+ alliance.
• The US economy contracted in the first quarter of 2025--its first decline in three years--highlighting mounting economic strain.
• A larger-than-expected drawdown in US crude inventories provided some limited support to Oil prices.

West Texas Intermediate (WTI) crude Oil price is extending its losing streak for a fourth consecutive session on Thursday, trading around $57.20 per barrel during European hours. Oil prices have fallen to their lowest level in three weeks, weighed down by concerns over a potential supply increase from Saudi-led OPEC+ and weakening global demand amid ongoing trade tensions.

Reports suggest Saudi Arabia is signaling to allies and industry stakeholders that it is not willing to support the market with further production cuts and is prepared to withstand a prolonged period of lower prices. This has strengthened expectations that OPEC+ could announce an increase in output when it meets on May 5.

Adding to the bearish sentiment, the US economy contracted in the first quarter of 2025--its first decline in three years--reflecting the economic strain from US President Donald Trump's aggressive trade policies. US GDP shrank by an annualized 0.3% in Q1, falling short of the 0.4% growth forecast and sharply down from the 2.4% expansion recorded in the previous quarter.

However, a larger-than-expected decline in US crude inventories offered some support to Oil prices. The Energy Information Administration (EIA) reported on Wednesday that crude stockpiles dropped by 2.7 million barrels last week, driven by higher exports and refinery demand.

Despite this, Oil prices have slumped more than 20% since the start of President Trump's second term--falling below the breakeven point for many U.S. producers, as investor confidence wanes amid tariff disputes and policy uncertainty, undermining the administration's goal of achieving energy dominance.