Oil prices inched higher on Monday as traders remained cautious ahead of the upcoming OPEC+ meeting and amid continued uncertainty surrounding trade negotiations between the United States and China.
Brent crude oil, against which Nigerian oil is priced, rose by 22 cents to $67.09 per barrel by 05:29 a.m Nigerian time while U.S. West Texas Intermediate crude gained 24 cents to $63.26 per barrel.
Both benchmarks recorded their third consecutive session of gains following last week’s decline of more than 1 percent, driven by oversupply fears and trade-related concerns.
The oil market remains sensitive to developments ahead of the May 5 OPEC+ meeting, where some members are expected to propose accelerating output hikes for a second consecutive month.
In April, OPEC+ had already agreed to a production increase of 411,000 barrels per day for May, three times the initial plan. Market analysts are cautious that any further supply increase could pressure prices amid fragile global demand.
Michael McCarthy, chief executive officer at online trading platform Moomoo Australia, said that the absence of major news is allowing oil prices to move modestly higher as traders position themselves ahead of potential supply adjustments and increasing U.S. production.
Trade negotiations between the United States and China continue to cloud the broader economic outlook.
U.S. President Donald Trump recently signaled progress in trade talks but U.S. Treasury Secretary Scott Bessent did not confirm active negotiations while Chinese officials denied that discussions were ongoing. The conflicting signals have kept markets on edge as investors assess the potential impact of prolonged trade tensions on global growth and fuel demand.
Additional geopolitical risks also weigh on sentiment. Nuclear talks between the United States and Iran are ongoing in Oman but Iranian Foreign Minister Abbas Araqchi expressed extreme caution regarding the success of negotiations.
Meanwhile, a deadly explosion at Iran’s Bandar Abbas port has added to regional instability.
Despite the cautious mood, some market participants believe that any signs of a thaw in the U.S.-China trade conflict could trigger a buying opportunity.
Vandana Hari, founder of oil market analysis firm Vanda Insights, said that traders remain alert for positive trade signals that could lift demand projections.
Oil prices remain vulnerable to a complex mix of supply side developments and geopolitical uncertainty as the market awaits clearer signals from the upcoming OPEC+ meeting and global trade discussions.
