Saudi Arabia has stated that it is unwilling to further reduce production to support the oil market and is able to cope with the long-term existence of low oil prices.

Saudi Arabia has emphasized at multiple meetings that despite the sluggish global oil market, they have the ability to withstand a longer period of low-priced oil environment.

In addition, Saudi Arabia and other OPEC+member countries have revealed in previous discussions that they are expected to accelerate production increases in June, providing support for the second consecutive month of increased production. This decision may further suppress oil prices, especially in the context of uncertain global demand.

The contraction of the US economy in the first quarter further increased uncertainty in the oil market. According to preliminary estimates from the US Department of Commerce, US GDP shrank by 0.7% in the first quarter.

This data reflects the surge in imports due to the Trump administration's trade policies, and companies accelerating their import speed to avoid cost increases caused by tariffs, which further exacerbates concerns about a slowdown in global economic growth.

The combination of the contraction of the US economy and global trade tensions has led to a more gloomy outlook for oil market demand. "- Economic analyst John Spencer commented

The uncertainty of the global economy has put enormous pressure on the global oil market. Although some market analysts believe that oil prices may rebound in the short term due to increased supply from OPEC+and the United States, in the long run, sluggish demand will still dominate the trend of oil prices.

According to a survey by Luffy, 40 economists and analysts predict that the average price of Brent crude oil in 2025 will be $68.98 per barrel, lower than the March forecast of $72.94.

The average price of US crude oil is expected to be $65.08 per barrel, a decrease from last month's expectation of $69.16.

The data released by the US Energy Information Administration (EIA) on Wednesday showed an unexpected decrease of 2.7 million barrels in US crude oil inventories, indicating an increase in refinery and export demand.

This data is higher than the market's expected increase of 429000 barrels. However, the impact of this data is still overshadowed by the uncertainty of the market's future supply and demand prospects.

From the daily chart of WTI crude oil, the current price continues to fluctuate and consolidate, and the possibility of a breakthrough is relatively small. The price has found some support near $58.00, but there is still room for downward movement.

Technical indicators show that the support level between the 50 day moving average and the 200 day moving average is gradually rising, indicating that the market may be in a wide range of fluctuations.

If it breaks through the $60 mark, there is a possibility of a short-term rebound; On the contrary, if it falls below the support level of $57, it may intensify downward pressure.

Editor's viewpoint:

Although the increase in production by Saudi Arabia and OPEC+may bring short-term supply pressure, the slowdown of the US economy and weak global demand remain key factors in the long-term trend of oil prices.

With the increasing uncertainty in trade, there are divergent opinions in the market regarding the future trend of oil prices. It is recommended that investors pay attention to the upcoming economic data and the results of the OPEC+meeting, and closely observe whether oil prices will break through the current range. In the short term, oil prices may continue to maintain a volatile consolidation pattern.