Oil breathes a sigh of relief after a wave of sale followed concerns about supplies

Oil prices increased today, Thursday, after sharp losses incurred by the previous day driven by signs that Saudi Arabia may produce more oil and the contraction of America’s economy in the first quarter.

Brent crude futures rose 0.3% to $ 61.22 a barrel, and Texas crude contracts increased 0.1% to $ 58.27, after closing yesterday at the lowest level since March 2021.

Sources for “Reuters”, said that Saudi officials had informed allies and experts in the oil sector, that Riyadh does not want to support the oil market with more production discounts, and that it is able to bear the decline in prices for a long time, while sources previously said that a number of members of “OPEC+” will suggest that the group accelerate the increase in production in June for the second month in a row.

Meanwhile, America’s economy shrinkled in the first quarter of this year for the first time in 3 years, amid a tremendous flow of imports at a time when companies were racing against time to avoid the high costs caused by customs duties, highlighting the impact of the commercial policy that President Donald Trump pursues the economy.

The Energy Information Administration stated yesterday, Wednesday, that US crude oil stocks decreased unexpected by 2.7 million barrels last week due to the increase in export and the rise of refineries, compared to the expectations of analysts in a Reuters survey by 429 thousand barrels.