Oil on track for biggest monthly drop since 2021

Oil futures are falling more than 1% on international markets and are heading for their biggest monthly drop in more than three years. The reason for this is the prospect of reduced demand for fuels, along with a likely increase in supply.

In the case of a barrel of crude, it is depreciating 0.88% to 59.89 dollars, while Brent falls 0.98% and remains at 62.66 dollars. In the accumulated since the beginning of April, there are falls of close to 16% and 15%, respectively, which are the largest on a monthly scale since November 2021.

April began with the announcement of trade tariffs on US imports across a wide range of sectors. A decision taken by the respective president, Donald Trump, which pushed prices on the markets into sharp declines. Values ​​are now at the lowest levels seen in February 2021, when they were recovering from the peak of the pandemic.

On the one hand, US consumer confidence data fell to nearly five-year lows in April, as a result of the imposition of trade tariffs. In this context, a reduction in demand is expected, leading to declines in futures prices. Another determining factor is the increase in oil production from May onwards, decreed by OPEC+ earlier this month. The consequence will be an increase in the level of supply available on the market.

All in all, investors are preparing for a scenario of greater supply and lower demand, which is driving down trading prices.