• Oil prices climbed on Thursday as investors considered potential OPEC+ output hikes and positive US-China trade talk developments.
• Kazakhstan’s deviation from OPEC+ quotas raises concerns about market stability and possible price wars.
• Uncertainty surrounding US-Iran nuclear talks and sanctions adds another layer of complexity to the oil market outlook.

Oil prices climbed Thursday, with Brent crude up 0.97% to $66.76 and WTI up 1.17% to $63.00, recovering half of Wednesday’s losses. 

Investors weighed potential OPEC+ output hikes in June, driven by Kazakhstan’s defiance of quotas, prioritizing national interests. 

ING analysts noted, “Further disagreement between OPEC+ members is a clear downside risk, as it could lead to a price war,” 

U.S.-China trade talk optimism, following reports of potential U.S. tariff cuts to 50%, bolstered prices, though China demands full tariff removal. 

U.S.-Iran nuclear talks, alongside new sanctions, add uncertainty, as eased sanctions could increase Iranian oil supply, potentially capping price gains.

By Michael Kern for Oilprice.com

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