The near 3% drop today sees oil poised for a potential decline of over 10% this week with not much reprieve in sight. The previous low in April this year touched $55.15 before a bounce on the tariffs pause. But even then, it hardly resulted in a change in confidence in the oil market. In fact, as things went on one can argue that we’re seeing the developments turn for the worse.

The latest news from Saudi Arabia here doesn’t add much encouragement whatsoever to an already struggling outlook.

With the global economic backdrop set to soften amid tariffs and demand conditions also hit hard by the US-China trade standoff, the fact that OPEC+ continues to push for output increases is just adding a heavy burden to oil prices in the current landscape.

It’s a tough one to weed out and the only saving grace looks to be a turning point on the tariffs front. That will be a key spot to watch for oil, considering it is getting little help elsewhere – in particular from OPEC+ and its members.

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