International oil prices rebounded sharply on Tuesday.
After two consecutive days of significant declines, crude prices soared following Diamondback Energy’s pessimistic outlook on U.S. oil production.
In a letter to shareholders, Diamondback Energy CEO Travis Stice suggested that the U.S. onshore oil production may have reached its peak, predicting a decline in output due to recent price drops.
West Texas Intermediate (WTI), the U.S. oil benchmark, has fallen about 17% this year.
Concerns that U.S. President Donald Trump’s tariff policies could trigger an economic slowdown or recession in the U.S. are weighing on oil demand expectations.
Amid these demand worries, downward pressure on oil prices is also intensifying as OPEC+ nations, led by Saudi Arabia, are rapidly increasing production.
Brent crude, the global benchmark, settled at 62.15 USD a barrel for July delivery, up 1.92 USD (3.19%) from the previous session.
Similarly, WTI jumped 1.96 USD (3.43%) to 59.09 USD per barrel for June delivery.
