Crude oil prices saw a marginal decline on Monday, influenced by mounting concerns over a global supply glut and fresh speculations surrounding a potential nuclear agreement between the United States and Iran.
The international benchmark, Brent crude, dropped by 0.53%, trading at $64.18 per barrel—down from the previous Friday’s close of $65.41. Meanwhile, U.S. benchmark West Texas Intermediate (WTI) crude traded at $61.64 per barrel during the same period.
Investor sentiment continues to be weighed down by the ongoing uncertainty surrounding the U.S. Federal Reserve’s future monetary policy decisions, diplomatic developments between Russia and Ukraine, and evolving reports of a likely increase in global crude output.
Talks regarding a new U.S. nuclear proposal to Iran have resurfaced, igniting fresh concerns that a successful deal could flood the market with Iranian oil, intensifying fears of oversupply. Though trade friction between the U.S. and China has recently eased, questions remain over the longer-term impact of former President Donald Trump’s protectionist “America First” economic agenda.
Additional pressure on prices came from the International Energy Agency’s (IEA) recent Oil Market Report, which revealed that global oil production in April rose by 160,000 barrels per day compared to March, bringing the total to 104.46 million barrels per day.
In the United States, the number of active oil rigs—a key indicator of near-term production—declined slightly. According to energy services provider Baker Hughes, the U.S. rig count fell by one last week, settling at 473 rigs for the week ending May 16. This marks a year-over-year decrease of 24 rigs, reflecting a slower pace in domestic production.
