Energy Prices

Energy prices decreased 1.4% month on month in May, following April’s 6.5% fall.

May’s decline was the fourth consecutive, with crude oil prices falling again in the most prolonged downturn since January–April 2020, the ground zero of the Covid-19 pandemic. In May, OPEC+ said it would raise crude output in July, tripling its planned hike and marking the fourth consecutive month of production increase. This move comes against a backdrop of weakening demand prospects for the fuel, with U.S. tariffs expected to hit global GDP growth significantly. In recent weeks, Trump threatened a 50% levy on the EU, suggesting that U.S. trade barriers are likely to remain high despite a recent truce with China. That said, prices for most other energy commodities rose, albeit mildly, with coal and natural gas boosted by supply disruptions.