Oil Prices Dip as Global Stock Markets Show Mixed Results Amidst Holiday Trading Lull

HONG KONG (AP) — Global stocks opened mixed on Monday due to holiday-related trading volumes, while oil prices dropped after the OPEC+ group announced plans to increase output.

Many markets, including those in Britain and much of Asia, were closed. In the U.S., the futures for the S&P 500 dipped by 0.6%, and the Dow Jones lost 0.5%. In Europe, Germany’s DAX climbed by 0.4%, while Paris’s CAC 40 fell by 0.4%.

Oil prices took a hit as well. U.S. benchmark crude fell about 4% earlier in the day, settling down to $57.14 per barrel, a decrease of 2%. Meanwhile, Brent crude, the international benchmark, dropped to $60.15 per barrel.

OPEC+ plans to raise production by 411,000 barrels per day starting June 1. This decision is backed by strong market fundamentals. However, analysts suggest it might also be an attempt to please President Trump ahead of his Middle East visit later this month.

Recently, oil prices have fallen nearly 20% in three months as investors factor in the potential impact of Trump’s trade policies on the global economy. Lower gas prices are a key focus for the Trump administration.

“Washington wants cheap energy, and Gulf producers still lean on U.S. security guarantees; when the White House speaks, they listen,” said Stephen Innes from SPI Asset Management. He adds that the U.S. president has become an unofficial influencer within OPEC+.

As a result, U.S. crude oil is down about 17% year-to-date. AAA statistics show the average price of gasoline has dropped to around $3.17 per gallon, down from $3.66 a year ago. However, falling prices may hurt many producers who struggle to turn a profit.

In Asia, the situation mirrored the mixed sentiment. Australia’s S&P/ASX 200 declined by 1% to 8,157.80, while Taiwan’s Taiex fell 1.2%. The U.S. dollar also slipped against the Japanese yen, trading at 144.15 from 144.71. The euro rose slightly to $1.1329 from $1.1306.

On the previous Friday, the U.S. market saw a positive uptick, marking its longest winning streak since 2004. The S&P 500 climbed 1.5%, boosted by a favorable U.S. job market report and optimism about trade relations with China. However, the S&P 500 is still down 3.3% for the year and 7.4% below its February record.

Interestingly, roughly 90% of stocks in the S&P 500 saw gains, with technology leading the charge. Microsoft rose 2.3% and Nvidia gained 2.5%. On the flip side, Apple dropped by 3.7% due to concerns over tariffs that could cost the company $900 million.

In April, employers added 177,000 jobs, a decent number but slower than the previous month. As trade tensions escalate, companies are closely monitoring job growth for signs of economic stress.

Currently, experts see early signs of economic challenge. The U.S. economy contracted at an annual rate of 0.3% in the first quarter of the year, largely due to rising imports as businesses tried to stock up ahead of impending tariffs. This uncertainty is causing firms to revise financial forecasts, impacting consumer spending and overall economic stability.

For more in-depth analysis, see this Bloomberg report on current market trends.

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