Oil Prices Edge Higher Amid OPEC+ Supply Concerns and Trade Uncertainty

Oil prices edged up in early Monday trade, supported by short-covering despite lingering uncertainty over U.S.-China trade talks and potential increases in OPEC+ supply. Brent crude rose 9 cents to $66.96 a barrel, while U.S. West Texas Intermediate (WTI) crude gained 9 cents to $63.11 by 0025 GMT.

Michael McCarthy, CEO of Moomoo Australia, noted that "the absence of fresh news is pushing oil prices modestly higher" as traders brace for possible OPEC+ output hikes at the May 5 meeting and rising U.S. production. Some OPEC+ members are expected to propose accelerating production increases for a second straight month, adding to fears of oversupply.

Last week, Brent and WTI fell over 1% due to concerns that tariffs and a sluggish global economy could weaken fuel demand. Market sentiment remains shaky amid conflicting signals between U.S. President Donald Trump and Beijing regarding the progress of trade negotiations. U.S. Treasury Secretary Scott Bessent on Sunday declined to confirm Trump’s claims of ongoing talks, while China also denied any discussions.

Adding to geopolitical tensions, nuclear negotiations between Iran and the U.S. continue this week in Oman. Iranian Foreign Minister Abbas Araqchi expressed caution over the talks' prospects. Meanwhile, a massive explosion at Iran’s key port, Bandar Abbas, killed at least 40 and injured more than 1,200, intensifying regional instability.

In a separate development, U.S. officials urged Russia and Ukraine to advance peace talks following President Trump's meeting with Ukrainian President Volodymyr Zelenskiy at the Vatican.