Oil prices increased marginally on Thursday after falling by around 2 percent in the previous session as investors gauged a potential OPEC+ output increase amid conflicting tariff signals from the White House and ongoing U.S.-Iran nuclear talks.
As of 4:33 GMT, Brent crude futures were up 0.09 percent to $66.18, and U.S. West Texas Intermediate crude rose 0.08 percent to $62.32.
Oil prices fell 2 percent in the previous trading session after Reuters reported that several OPEC+ members will suggest the group accelerate oil output increases for a second month in June, citing three sources familiar with the OPEC+ talks.
U.S.-China trade deal boosts market
The U.S. and China could be moving closer to trade talks, which gives oil prices some support. U.S. Treasury Secretary Scott Bessent said on Wednesday that current tariffs, which are sitting at 145 percent on Chinese products and 125 percent on U.S. products, were not sustainable and would have to come down before trade talks between the two sides.
Trump also expressed optimism that a trade deal with China could “substantially” reduce tariffs on Chinese goods, hinting that the final deal will not “be anywhere near” current tariff rates. “If we don’t reach a deal, we’re simply setting the price — then it’s up to them to decide if they want to proceed,” he added, noting that the current 145 percent rate remains in effect due to a lack of trade activity with China.
However, White House Press Secretary Karoline Leavitt said in an interview on Wednesday that there would be no unilateral reduction in tariffs on goods from China.
Meanwhile, Trump is planning to relieve carmakers from some tariffs following intense lobbying by industry executives over recent weeks.
Read: Dubai gold prices climb AED3.5, global rates rebound despite U.S.-China trade deal optimism
U.S.-Iran deal to impact oil prices
The U.S. and Iran will hold a third round of talks this weekend on a possible deal to reimpose limits on Tehran’s uranium enrichment program. The market is watching the talks for any sign that a U.S.-Iran deal could lead to the easing of sanctions on Iranian oil and boost supply, which is likely to impact oil prices.
However, the U.S. on Tuesday placed new sanctions on Iran’s energy sector, which Iran’s foreign ministry spokesperson said showed a “lack of goodwill and seriousness” over dialogue with Tehran.
The U.S. sanctions targeted Iranian liquefied petroleum gas and the crude oil shipping magnate Seyed Asadoollah Emamjomeh, along with his corporate network. Emamjomeh’s network is responsible for shipping hundreds of millions of dollars’ worth of Iranian LPG and crude oil to foreign markets, according to a statement from the U.S. Treasury.
