Oil stable after monthly loss

Oil drilling rigs

Oil prices were steady in early session today, May 1, after posting their biggest monthly loss since 2021, amid concerns about the impact of the trade war on demand and signs of increased OPEC+ production.

Brent crude was trading at $61.13 a barrel, at 8:33 am Makkah time. West Texas Intermediate (WTI) crude held at $58.22 a barrel, after declining 16% in April.

US Trade Representative Jamieson Greer told Fox News that the US is close to announcing the first batch of trade deals, but indicated that formal talks with China have not yet taken place. However, President Trump said in separate statements that there is a good chance of reaching an agreement with Beijing.

Morgan Stanley explained that global oil demand remained stable in April compared to its year-ago levels at 102 million barrels per day, after the US bank expected an increase of 500,000 barrels per day last month.

Meanwhile, several OPEC+ members will propose that the group accelerate production increases in June for the second consecutive month, Reuters reported, citing sources familiar with the matter. A formal meeting is scheduled for May 5 to determine next month's production plan.