Oil prices stabilize after 2% drop on potential OPEC+ output increase

Oil prices rose on Thursday after falling nearly 2% during the previous session, as investors weighed a potential increase in OPEC+ production amid conflicting signals on tariffs from the White House and ongoing US-Iran talks on the nuclear issue, UNN writes, citing Reuters.

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Brent crude futures rose 8 cents, or 0.12%, to $66.20 a barrel by 05:05 GMT (08:05 Kyiv time), while US West Texas Intermediate crude rose 9 cents, or 0.14%, to $62.36 a barrel.

Prices fell 2% during the previous trading session after Reuters reported that several OPEC+ members suggest the group will accelerate oil production increases for the second consecutive month in June, citing three sources familiar with OPEC+ talks.

"While yesterday's risk-on move lifted most risk assets, oil lagged behind due to disagreements within OPEC+", ING analysts wrote in their note.

Kazakhstan, which produces about 2% of global oil production and has repeatedly exceeded its quota over the past year, said it would prioritize national interests over OPEC+ interests when making decisions about production levels, Reuters reported on Wednesday.

Oil fell by about 1% amid Kazakhstan's statements on production23.04.25, 17:20 • 7733 views

Previously, disputes arose between OPEC+ members regarding compliance with production quotas, one of which led to Angola's withdrawal from OPEC+ in 2023.

"Further disagreements between OPEC+ members are a clear downside risk as it could lead to a price war," ING analysts said.

Signs that the US and China may be moving closer to trade talks supported prices. The Wall Street Journal reported that the White House is ready to cut its tariffs on China by up to 50% to start talks.

The White House may cut import duties for China by almost half - WSJ24.04.25, 03:24 • 5049 views

US Treasury Secretary Scott Bessent said on Wednesday that current import duties - 145% on Chinese goods destined for the US and 125% on US goods destined for China - are not sustainable and should be reduced before trade talks begin between the two sides. However, White House spokeswoman Caroline Levitt later told Fox News that there would be no unilateral reduction in tariffs on goods from China.

Rystad Energy analysts say the ongoing trade war between the US and China could cut China's oil demand growth in half this year to 90,000 barrels per day from 180,000 barrels per day.

Trump is also considering waiving tariffs on auto parts imports from China, the Financial Times reported on Wednesday.

Potentially easing pressure on oil, the US and Iran will hold a third round of talks this weekend on a possible deal to restore restrictions on Tehran's uranium enrichment program. The market is watching the talks for signs that a rapprochement between the US and Iran could lead to easing sanctions on Iranian oil and increasing supplies.

However, on Tuesday, the US imposed new sanctions on Iran's energy sector, which, according to an Iranian Foreign Ministry official, indicates a "lack of goodwill and seriousness" regarding dialogue with Tehran.