Crude oil prices fell 19% in a month, increasing pressure on agricultural prices

Crude oil prices have responded to the “achievements” of Trump’s 100 days in office in shaking up the US and global economy with another drop. The lack of progress in negotiations with China, a 0.3% decline in US GDP in the first quarter (compared to a 3% increase last year), and a drop in Chinese manufacturing activity to a 16-month low indicate a slowdown in the world’s largest economies, which will lead to a reduction in demand for oil and energy. In addition, Saudi Arabia recently said it could weather a prolonged period of low prices by increasing oil production. Several other OPEC+ members are proposing a second consecutive month of output increases in June, which will be discussed at a meeting on May 5. The production increase would lower oil prices and punish OPEC+ members that produce more than their quotas. June Brent crude futures fell by 6% to $63.1/barrel (-19% for the month) since Monday, and US WTI futures fell by 8.4% to $58.1/barrel (-22% for the month). Amid ...