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Oil Prices Rise as OPEC Sees Steady Demand Despite Trade Risks
Oil prices climbed slightly on Monday, with Brent crude reaching $65.39 and WTI hitting $62.14, after OPEC revised its 2025 demand growth forecast to 1.3 million barrels per day, down 150,000 bpd from previous estimates. The rebound in oil prices were also spurred by temporary U.S. tariff exemptions on some Chinese goods, though markets remain wary as President Trump prepares new semiconductor tariffs.
OPEC’s revised outlook reflects concerns over economic uncertainty from erratic U.S. trade policies, which have already pushed prices $10 below pre-tariff levels. Analysts note the market remains fragile, with Goldman Sachs cutting its 2025-26 forecasts and some forecasters even fearing an oversupply.
China’s March crude imports rose 5 per cent year-on-year, providing short-term support, but U.S. drillers are pulling back, with rig counts falling for three straight weeks. Geopolitical risks persist as the U.S. weighs stricter Iranian oil sanctions, though recent nuclear talks were termed “constructive.”
While the demand picture appears resilient, analysts warn trade policy volatility continues to cloud the outlook. Without more stability, price gains may prove fleeting as the market balances OPEC’s optimism against growing economic headwinds.
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