On Thursday, Brent crude oil futures steadied around $66 per barrel after experiencing a nearly 2% decline in the prior session. This stability emerged as investors balanced the potential for increased oil production from OPEC+ against developments in international trade. Anticipation builds as several OPEC+ members are predicted to advocate for a second consecutive month of increased output in June. Simultaneously, Kazakhstan, an important OPEC+ ally, announced its inability to reduce production at its major oil fields, choosing instead to focus on national interests when determining production levels.
In the realm of trade, there are encouraging signs, with US-China discussions showing progress. Reports indicate a possibility of the White House reducing tariffs on China by 50% to aid negotiations. However, US Treasury Secretary Bessent stated that the existing tariffs are untenable, whereas White House Press Secretary Leavitt assured there would be no unilateral tariff reductions.
In the context of US-Iran negotiations, while talks may potentially ease sanctions and increase oil supply, the imposition of new US sanctions on Iran's energy sector represents an impediment to these discussions.
