Brent crude oil futures rise above $62 per barrel, up 0.24% intraday.

Brent crude oil futures rise above $62 per barrel, up 0.24% intraday.

Brent crude oil futures rebounded on Tuesday, rising 0.24% intraday to $62.6 per barrel. This surge came after a four-year low, as technical indicators signaled an oversold market and bargain hunters stepped in. The recovery was also supported by the return of Chinese buyers following a holiday and signs of a potential slowdown in US shale production [1].

Diamondback Energy, a major Permian producer, trimmed its output forecast and warned of a coming drop in onshore drilling activity. Another key shale operator also announced cutbacks, indicating that low prices are beginning to impact production. Meanwhile, Saudi Arabia’s modest reduction in official selling prices signaled a cautious approach to market share, softening the bearish sentiment after OPEC+ agreed to boost output in June [1].

The stronger-than-expected U.S. services PMI reading also suggested underlying demand resilience, contributing to the price increase. Brent crude oil is expected to trade at $62.22 USD/BBL by the end of this quarter, according to Trading Economics global macro models and analysts' expectations [1].

Falling oil prices, driven by escalating trade tensions between the United States and China, could offer much-needed relief to Türkiye’s current account balance, according to analysts. Brent crude settled at its lowest since February 2021 on Monday, driven by an OPEC+ decision over the weekend to further speed up oil production hikes for a second consecutive month [2]. However, the return of Chinese market participants after a five-day public holiday since May 1 was seen supporting prices on Tuesday [2].

Barclays lowered its Brent oil price forecast by $4 per barrel to $66/bbl for 2025 and by $2 to $60/bbl for 2026, citing the decision by OPEC+ to accelerate oil production hikes. OPEC+ sources have said Saudi Arabia is pushing the group to accelerate the unwinding of earlier output cuts to punish fellow members Iraq and Kazakhstan for poor compliance with their production quotas [4].

Oil prices are on track to record their second consecutive weekly decline as OPEC+ considers further production increases. Bloomberg reports that Brent crude futures hovered near $62 a barrel on Friday, with the July contract falling approximately 6% this week amid expectations that Saudi Arabia will push OPEC+ to announce an additional supply boost on Monday [5].

The current article reflects the latest developments in the Brent crude oil market, providing insights into the factors driving price movements and the broader economic implications.

References:
[1] https://tradingeconomics.com/commodity/brent-crude-oil
[2] https://www.dailysabah.com/business/energy/oil-price-plunge-could-ease-turkiyes-current-account-deficit-burden
[3] https://www.fxempire.com/commodities/brent-crude-oil
[4] https://www.tradingview.com/news/reuters.com,2025:newsml_L4N3RD01I:0-barclays-cuts-2025-2026-brent-crude-forecast-as-opec-accelerates-output-hikes/
[5] https://www.indexbox.io/blog/oil-prices-face-second-weekly-decline-amid-opec-production-talks/