Oil prices rallied on Tuesday, recovering sharply after a weekend announcement from OPEC to raise production quotas sent markets into a brief tailspin.
West Texas Intermediate (WTI) jumped more than 4% to trade above $59 per barrel, while Brent crude climbed 3.7%, pushing past $62. The surge follows a difficult April, when prices dropped due to U.S. tariffs and mixed signals from OPEC+.
OPEC’s weekend decision to raise production quotas by more than expected initially pressured markets. But analysts say the changes mostly reflect reality, as countries like Iraq and Nigeria have already been producing above their official limits. The new quotas largely legalize current output, meaning actual supply levels may not increase.
Saudi Arabia’s quota was quietly raised for May and June. However, that additional allowance is expected to cover higher domestic demand during the kingdom’s hot summer months. The move allows Saudi Arabia to meet energy needs without violating OPEC+ rules.
Analysts say Tuesday’s price rebound was partly driven by technical factors but also supported by real demand. Lower prices have begun to stimulate consumption. U.S. data released Tuesday showed stronger-than-expected performance in the services sector, suggesting economic resilience despite ongoing tariffs.
Adding to the geopolitical backdrop, President Trump on Monday claimed that falling oil prices gave the U.S. leverage in negotiations with Russia over the war in Ukraine. His remarks highlighted oil’s continuing role in global diplomacy.
In another sign of shifting market dynamics, Saudi Arabia raised its official selling prices to Asia this week—its largest export market—even as it appeared to loosen production limits.
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