Oil prices ticked upward during Asian trade on Thursday after shedding nearly 2% in the previous session, as investors weighed signs of a potential OPEC+ production increase alongside conflicting signals on United States-China tariffs and progress in U.S.-Iran nuclear talks.
By 2:40 pm AEST (5:40 am GMT), Brent crude rose by $0.08 or 0.1% to US$66.20 per barrel, while U.S. West Texas Intermediate (WTI) added $0.05 or 0.1% to $62.32 per barrel.
The modest gains followed a sharp drop on Wednesday, driven by reports that several OPEC+ nations are pushing for the group to accelerate oil output hikes for a second month in June. The push comes amid internal disputes over production quota compliance, with Kazakhstan citing constraints at major oil projects managed by international firms as a barrier to cuts.
“Oil prices fell by 1.6% after news that several OPEC+ members are considering accelerating oil output increases for a second consecutive month in June,” ANZ analysts noted. “This follows the group's decision to hike production by 411kb/d from May, up from the earlier plan of 138kb/d.”
The geopolitical backdrop added further complexity. Oil found some support from optimism around U.S.-China trade discussions. The Wall Street Journal reported that the Trump administration may be willing to cut tariffs on Chinese goods to 50% to facilitate new talks.
U.S. Treasury Secretary Scott Bessent said on Wednesday that the existing 145% tariffs on Chinese goods and 125% tariffs on U.S. exports were “unsustainable”, although he did not offer specifics.
Meanwhile, attention is also turning to U.S.-Iran nuclear talks. A third round of discussions is scheduled for this weekend, raising market speculation that an agreement could ease sanctions on Iranian oil, boosting global supply.
Still, any hopes of progress were tempered by fresh U.S. sanctions on Iran’s energy sector on Tuesday - a move Tehran described as showing “a lack of goodwill and seriousness”.
On the supply side, U.S. crude stockpiles unexpectedly rose last week. According to the Energy Information Administration (EIA), inventories grew by 244,000 barrels to 443.1 million in the week ending April 18, contrasting with analyst expectations for a 700,000-barrel draw.
