BEIJING – Oil prices stabilized on Thursday after a sharp drop the previous day, as traders assessed signals that OPEC+ may bring forward plans to increase oil output, alongside continued uncertainty over global trade and geopolitical developments.
Brent crude futures rose 0.8% to $66.65 per barrel, while U.S. West Texas Intermediate (WTI) crude increased by 0.88% to $62.82 per barrel—recovering some ground lost during Wednesday’s nearly 2% decline, according to a Reuters report.
The earlier drop was driven by growing expectations that the OPEC+ alliance—comprising the Organization of the Petroleum Exporting Countries and its allies—might accelerate its production increases to June. Citing sources familiar with the matter, Reuters reported that internal pressure is building within the group, with some member states seeking greater production flexibility.
Kazakhstan, for instance, has indicated that it may prioritise national interests over agreed quotas, raising questions about the group’s cohesion. This follows Angola’s departure from OPEC+ in 2023, underscoring potential risks to the alliance’s unity.
In parallel, markets are also reacting to mixed signals from the United States regarding its trade policy with China. While there are indications that Washington may consider easing tariffs to revive negotiations, conflicting statements from officials have added to market uncertainty.
Meanwhile, ongoing efforts to restore the U.S.-Iran nuclear agreement remain fragile. New U.S. sanctions imposed on Iran this week further complicate the prospects for a deal, with potential implications for global oil supply.
Analysts warn that if divisions within OPEC+ persist, the risk of a renewed price war cannot be ruled out. Broader geopolitical and economic factors are also likely to influence the oil market’s trajectory in the coming months. _Reuters
Oman Observer is now on the WhatsApp channel. Click here
