Oil prices recovered some ground on Thursday as markets responded to mixed signals on production levels from OPEC+ members, developments in U.S.-China trade policy, and ongoing U.S.-Iran nuclear discussions.
Brent crude rose 67 cents, or 1.01%, to $66.79 a barrel by 1220 GMT, while U.S. West Texas Intermediate (WTI) crude climbed 75 cents, or 1.2%, to $63.02. The gains helped prices regain about half of the losses recorded on Wednesday, when markets fell nearly 2% amid talk of an accelerated OPEC+ production increase for June.
Kazakhstan, which contributes around 2% of global oil output, indicated it would base its production decisions on national priorities rather than OPEC+ targets. The country has consistently exceeded its output quota over the past year.
Disagreements over production compliance have emerged within OPEC+ before, including in 2023 when Angola exited the alliance.
Elsewhere, trade policy developments influenced market sentiment. China on Thursday called for the removal of U.S. tariffs, following reports that the White House could consider reducing its tariffs on Chinese goods to facilitate trade discussions. Such moves were seen as potentially supportive of energy demand.
At the same time, attention remained on the U.S.-Iran nuclear talks, with a third round of negotiations scheduled for the weekend. The discussions could lead to the easing of sanctions on Iranian oil, which would increase global supply.
However, new U.S. sanctions were imposed on Iran’s energy sector earlier this week. Iran’s foreign ministry criticized the move, suggesting it undermines ongoing diplomatic efforts.
