Foreign News

Oil Steadies After 2% Drop on Potential OPEC+ Output Increase

Oil prices ticked up on Thursday after falling nearly 2% in the previous session, with investors weighing a potential OPEC+ output increase against conflicting tariff signals from the White House and ongoing U.S.-Iran nuclear talks.

Brent crude futures rose 8 cents, or 0.12%, to $66.20 a barrel by 0505 GMT, while U.S. West Texas Intermediate crude gained 9 cents, or 0.14%, to $62.36 a barrel.

Prices settled down 2% in the previous trading session after Reuters reported that several OPEC+ members would suggest the group accelerate oil output increases for a second month in June, citing three sources familiar with the OPEC+ talks.

“While a risk-on move lifted most risk assets yesterday, oil was left behind thanks to OPEC+ discord,” ING analysts wrote in a note.

Kazakhstan, which produces about 2% of global oil output and has repeatedly exceeded its quota over the past year, said it would prioritise national interest, rather than that of OPEC+ in deciding production levels, Reuters reported on Wednesday.

There have previously been disputes among OPEC+ members over compliance with production quotas, one of which resulted in Angola exiting OPEC+ in 2023.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Most Popular

To Top