BEIJING- Oil prices ticked up early on Thursday after falling nearly 2 percent in the previous session, with investors weighing a potential OPEC+ output increase against conflicting tariff signals from the White House and ongoing US-Iran nuclear talks.
Brent crude futures rose 6 cents, or 0.09 percent, to $66.18 a barrel, while US West Texas Intermediate crude gained 7 cents, or 0.11 percent, to $62.34 a barrel.
Prices fell 2 percent in the previous trading session after Reuters reported that several OPEC+ members will suggest the group accelerates oil output increases for a second month in June, citing three sources familiar with the OPEC+ talks.
There had previously been disputes among the members over compliance with production quotas.
Signs that the US and China could be moving closer to trade talks gave prices some support. The Wall Street Journal reported that the White House would be willing to lower its tariffs on China to as low as 50 percent in order to open up negotiations.
US Treasury Secretary Scott Bessent said on Wednesday that current tariffs – 145 percent on Chinese products and 125 percent on US products – were not sustainable and would have to come down before trade talks between the two sides, but he did not put a number on it. However, White House Press Secretary Karoline Leavitt said in an interview with Fox News on Wednesday that there would be no unilateral reduction in tariffs on goods from China.
Rystad Energy analysts say a prolonged US-China trade war could cut China’s oil demand growth in half this year to 90,000 barrels per day (bpd) from 180,000 bpd.
