U.S. oil futures rose 1.8% to $59.24 a barrel, ending a three-day losing streak, after President Trump threatened secondary sanctions on buyers of Iranian oil. The price jump—the largest in over a week—followed losses triggered by OPEC+ and other producers unexpectedly boosting output. Strengthening equity markets also supported the rebound.Saudi officials have signaled they can withstand low oil prices, suggesting a possible push for increased OPEC+ supply at the May 5 meeting.
Analysts note recent overselling and trader caution ahead of the weekend and the meeting. Despite downward price pressure, supply risks remain. U.S. Senator Lindsey Graham said 72 senators back a bill imposing harsh sanctions on Russia and tariffs on nations buying its oil if Putin avoids serious peace talks.The U.S. continues to sanction entities transporting Iranian and Venezuelan oil.
However, demand concerns persist as U.S. economic data shows the first contraction since 2022, and Chinese factory activity hits its worst level since 2023. This overshadowed a drop in U.S. crude and gasoline inventories. Brent settled at $62.13 and WTI at $59.24 per barrel.
