Oil prices rebounded on Tuesday after six consecutive sessions of losses, gaining over $1 per barrel in a technical correction supported by bargain hunting and renewed activity from China following a public holiday.
Brent crude oil, the international benchmark for Nigerian oil, rose by $1.15 to $61.38 per barrel as of 07:23 a.m. Nigerian time while U.S. West Texas Intermediate (WTI) crude gained $1.11 to settle at $58.24 per barrel.
Both benchmarks had closed at their lowest levels since February 2021 on Monday, triggered by a bearish reaction to OPEC+’s latest output decision.
The market recovery comes amid technical repositioning after steep declines. Oil had lost over 10% in six sessions and more than 20% since April due to increasing expectations of oversupply and weaker global economic signals.
Analysts attributed the rebound to near-term technical support rather than any shift in fundamentals. Yeap Jun Rong, Market Strategist at IG, said, “Today’s slight rebound in oil prices appears more technical than fundamental.
Persistent headwinds including a pivotal shift in OPEC+ production strategy, uncertain demand amid U.S. tariff risks, and price forecast downgrades are continuing to weigh on the broader price movement.”
OPEC+ announced plans to accelerate production hikes for a second consecutive month, a move that has raised concerns about market surplus. The group’s decision prompted a broad sell-off in the previous session, reflecting fears of a supply-demand imbalance.
The reopening of Chinese markets after a five-day holiday provided additional support on Tuesday. China, the world’s largest oil importer, resumed trading activity with buyers reportedly stepping in to take advantage of multi-month lows.
“China also reopened today, and being the largest importer, buyers would have likely jumped to secure oil at current low levels,” said Priyanka Sachdeva, Senior Market Analyst at Phillip Nova.
In the United States, economic data contributed to the rebound as the Institute for Supply Management (ISM) reported that the U.S. non-manufacturing Purchasing Managers Index (PMI) rose to 51.6 in April from 50.8 in March.
The data suggests continued expansion in the services sector and supports the demand outlook in the world’s largest oil-consuming nation.
Despite the temporary reprieve, several major institutions lowered their price forecasts this week. Barclays reduced its Brent crude outlook for 2025 by $4 to $70 per barrel and forecasted $62 for 2026, citing “a rocky road ahead for fundamentals” and trade-related uncertainty. Similarly, Goldman Sachs revised its price expectations down by $2 to $3 per barrel, factoring in an additional 400,000 barrels per day increase in OPEC+ production expected in July.
The U.S. Federal Reserve is also expected to keep interest rates unchanged at its upcoming policy meeting on Wednesday, as policymakers assess the evolving impact of trade tensions and market volatility on growth.
The oil market remains highly sensitive to macroeconomic developments, geopolitical risks, and producer group dynamics. While the Tuesday rebound offers short-term relief, broader concerns around supply imbalances and demand stability continue to weigh on sentiment.
As investors monitor upcoming inventory data and official statements from OPEC+ and U.S. monetary authorities, the near-term trajectory of crude prices will likely hinge on external economic conditions and policy clarity.
