Crude oil’s decline shows no signs of ending, with prices sinking more than 2% below $57 per barrel on Thursday morning as markets brace for a potential OPEC+ supply hike and rising signs of economic stress across major economies.
West Texas Intermediate crude futures – as closely represented by the United States Oil Fund (NYSE:USO) – are now on track to log four straight days of declines and reach April lows, when front-month contracts broke below $55, marking the cheapest level in over four years.
Since peaking in March 2022, oil prices have plunged 55%, with a 21% drop year-to-date and a 30% decline over the past 12 months, indicating a persistent bear market struggling to find a floor.
OPEC+ May Raise Supply Despite Falling Prices
Fresh pressure on prices came from reports that Saudi Arabia has told allies and industry participants it is prepared to endure a longer stretch of low prices without further supply cuts.
This strengthened speculation that OPEC+ could unveil a new production increase at its May 5 meeting.
David Goldman, head of trading at Novion Global, said …