In recent months, the price of crude oil has seen a notable drop, as Brent crude fell more than 20% from mid-January, now hovering near $60 per barrel – a low not seen in four years. A mix of reasons has pushed this decline, such as OPEC+ pumping out more oil, a dip in the worldwide demand for it, and growing tensions in trade.

The recent dip in prices stems largely from OPEC+’s choice to speed up the increase of production. At the start of May it was declared by the group that from June onward there would be a rise in output by 411,000 barrels each day which followed an increase in May. The decision driven by U.S. President Donald Trump’s push for cheaper oil prices has sparked worries over the possibility of too much oil flooding the market.

At the same time the world’s need for oil seems to be waning. Due to concerns over economic troubles from U.S. trade tariffs the International Energy Agency (IEA) just lowered its expectations for how much more oil the world will need in 2025. Not only have these tariffs dimmed the outlook for economic growth but they’ve also caused volatility in the market putting even more strain on oil prices.

As supply climbs and demand stumbles the world finds itself with more crude oil stored away than before. Vortexa’s figures show a hefty bump of about 150 million barrels in the world’s crude reserves starting from mid-February making worries about too much oil even bigger.

Following recent events major banks have revised their predictions for oil prices making them lower. Goldman Sachs has revised its outlook expecting the average price of Brent crude to be $60 per barrel through the end of 2025 showing a decrease from its earlier projections. In a similar vein to others, Barclays has updated its forecast for Brent crude in 2025, setting the price at $66 per barrel. This adjustment comes as a response to OPEC+ ramping up their output at a faster pace.

A drop in crude oil prices lately shows how more supply less demand and political issues worldwide are all tangled up together. If these elements don’t change much oil prices might keep feeling the squeeze for a while.