"Oil prices fell well below $60 per barrel recently before rallying back above that key level this week, initially driven lower by oversupply and weak demand. Global oil inventories had been rising, putting downward pressure on prices. At the same time, both OPEC+ and U.S. production were increasing amid relatively stable global oil demand, as OPEC+ sought to regain market share."
"Some Wall Street banks had expected West Texas Intermediate (WTI) oil prices to remain below $60 for the remainder of 2026, and that may still be the case. With prices slumping dramatically, OPEC+ recently announced plans to unwind its production cuts, with the increases being lower than those initially proposed. Toss in the dramatic recent events in Venezuela and Iran, and the prospects for some of the biggest oil companies could be improving."
Oil prices dropped well below $60 per barrel before rallying back above that level after oversupply and weak demand eased. Global inventories rose, putting downward pressure on prices while OPEC+ and U.S. production increased amid relatively stable demand as OPEC+ sought market share. OPEC+ announced plans to unwind production cuts, implementing smaller increases than initially proposed. Recent events in Venezuela and Iran could improve prospects for major oil companies. Concerns about global growth and tariffs that weighed on demand expectations have moderated. Benchmarks rallied off 2026 lows, creating buying opportunities in mega-cap integrated oil companies that pay dependable dividends.
Read at 24/7 Wall St.
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