FX.co ★ Oil Gains on Technical Rebound

WTI crude oil futures climbed above $63 per barrel on Tuesday, likely as a technical rebound following a decline of over 2% in the previous session. Nevertheless, the overall outlook remains pessimistic as developments in the US-Iran negotiations suggest a possible deal that could reintroduce Iranian oil exports to the market. Investors continue to exercise caution in light of economic pressures from tariffs and the growing uncertainty surrounding US monetary policy, both of which are anticipated to impact the wider economy and potentially dampen oil demand. A recent survey has suggested there is nearly a 50% odds of a US recession occurring within the next year. Meanwhile, OPEC+ is poised to increase output by 411,000 barrels per day starting in May, although this may be partially offset by reductions from countries that have exceeded their production quotas.