BEIJING, April 24 (Reuters) – Oil prices saw a modest increase early on Thursday, recovering slightly after a nearly 2% drop in the previous session. Investors are weighing the potential for an OPEC+ output hike against conflicting signals from the U.S. government and ongoing nuclear talks with Iran.
Brent crude futures rose by 6 cents, or 0.09%, to $66.18 per barrel at 0038 GMT. U.S. West Texas Intermediate crude gained 7 cents, or 0.11%, to $62.34 per barrel.
The slight rebound came after prices fell by 2% in the prior session. Reuters reported that several OPEC+ members are considering accelerating oil production increases for a second consecutive month in June, citing sources familiar with the group’s discussions. This follows previous disagreements among members about adhering to production quotas.
Market sentiment was also influenced by signs of progress in U.S.-China trade talks. According to The Wall Street Journal, the White House may be willing to reduce tariffs on China by as much as 50% to facilitate negotiations.
U.S. Treasury Secretary Scott Bessent stated on Wednesday that the current tariffs—145% on Chinese goods and 125% on U.S. products—were unsustainable and needed to be reduced before trade talks could resume, although he did not specify an exact figure. However, White House Press Secretary Karoline Leavitt later told Fox News there would be no unilateral reduction in tariffs.
Rystad Energy analysts warned that a prolonged U.S.-China trade dispute could halve China’s oil demand growth this year, lowering it to 90,000 barrels per day (bpd) from 180,000 bpd.
Meanwhile, former U.S. President Donald Trump is reportedly considering tariff exemptions for Chinese car parts imports, according to the Financial Times.
On the downside, oil prices are facing pressure from ongoing U.S.-Iran nuclear talks. This weekend, the two countries will hold a third round of discussions on reimposing restrictions on Iran’s uranium enrichment program. Any potential deal could ease sanctions on Iranian oil, boosting supply and putting further downward pressure on prices.
However, the U.S. imposed new sanctions on Iran’s energy sector on Tuesday. Iran’s foreign ministry condemned the move, calling it a sign of a “lack of goodwill and seriousness” in the negotiations with Tehran.
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