Bearish OPEC+ news cools markets
May 23, 2025
Energy markets started out lower on OPEC+’s news of more production coming in July. OPEC+ also claims they are now after market share. This news helped pulled prices back off early highs.
It appears many traders have taken off for a long holiday weekend as the markets were lightly traded and traded higher and lower on the day but settled in the middle of the day’s trading range. No conviction, no trend. This morning the markets are very light in activity. The rally in prices early yesterday was likely traders short covering for the long holiday weekend. After that early rally prices backed off and prices are also softer to start today. As we have said several times recently there is no direction, no conviction in these markets so prices are likely to be in a tight congestive range today and the markets will get back to more action next week.
Trump threatened 50% tariffs on European Union goods starting June 1. This news put some pressure on prices.
The energy markets continue to watch headlines for some direction. The news that OPEC+ is considering more prodctuion in July, above their original plan is a factor. The news from a US intelligence report that Israel is preparing to attack Iran’s nuclear sites if talks with the US fail is also a concern.
Yesterday the senate voted to block a California program that would ban gasoline-powered vehicles in the state by 2035.