West Texas Intermediate (WTI) crude oil futures were steady at approximately $62 per barrel on Thursday. This followed a decline of over 2% in the previous trading day, as market participants assessed the likelihood of OPEC+ increasing oil production amidst ongoing trade discussions. It is anticipated that several OPEC+ nations will advocate for a second month of increased production in June. However, Kazakhstan, a notable OPEC+ ally, has indicated its inability to reduce output from its significant oil fields, citing national interests as its priority in determining production levels.
In the realm of international trade, there are optimistic signals regarding US-China negotiations. Reports indicate that the US administration is considering halving tariffs on Chinese goods to aid these discussions. Despite this, US Treasury Secretary Bessent pointed out the unsustainability of the existing tariff levels, while White House Press Secretary Leavitt emphasized that any tariff changes would not be made unilaterally.
Moreover, negotiations between the US and Iran hold the potential to relax sanctions, potentially leading to an increase in oil supply. Nonetheless, the introduction of new US sanctions targeting Iran's energy sector is perceived as a complication in these diplomatic efforts.
