Oil Forecasts Dampen Amid OPEC+ Supply Increase and Global Trade Tensions

Oil price forecasts have been revised downward for the third month in a row, driven by an increase in OPEC+ supply and uncertainty surrounding trade disputes' impact on demand, according to a Reuters poll.

A survey of 40 economists and analysts in May predicts Brent crude will average $66.98 per barrel in 2025, down from April's forecast of $68.98. U.S. crude is now projected at $63.35, a dip from the previous estimate of $65.08.

While tensions have slightly eased between the U.S. and other nations, trade conflicts continue to loom as factors that may weaken oil demand, explained Tobias Keller from UniCredit. Meanwhile, geopolitical tensions, such as Russia's war in Ukraine, continue to pose risks to oil markets.

(With inputs from agencies.)