Oil prices went up on Thursday after falling earlier in the week. The rise came as new hopes in U.S.-China trade talks and growing tension among OPEC+ oil producers changed market direction.
At 9:30 AM EDT, West Texas Intermediate (WTI) crude was up 0.95 percent to $62.86 per barrel. Brent crude also rose by 0.7 percent to $66.58. These gains followed comments from both U.S. and Chinese leaders that gave markets fresh hope. At the same time, conflicts within OPEC+ raised new risks for oil prices.
Trade talks between U.S. and China boost the market
U.S. President Donald Trump said on Wednesday that tariffs on Chinese goods could be lowered. His statement came after China asked the U.S. to cancel its tariffs. Although no formal talks have taken place yet, the market saw these signs as progress.
If the trade war ends, oil demand could grow again, especially in China. China is one of the biggest oil buyers in the world. A peaceful trade deal would likely mean more oil purchases and stronger global demand.
Many analysts believe any step toward a deal will support oil prices in the short term.
OPEC+ faces new problems as Kazakhstan steps away
While trade hopes are lifting the market, trouble is rising inside OPEC+. Some countries are not following agreed output rules. One of them is Kazakhstan.
Kazakhstan makes about 2 percent of the world’s oil. This week, it said it will follow its national interest first, not OPEC+ decisions. This could be a warning sign that other countries might do the same.
If more members break the rules, OPEC+ may lose control over supply. This could lead to more oil in the market and falling prices.
What is OPEC+
OPEC+ is a group of 23 countries that produce oil. This includes OPEC members like Saudi Arabia and non-OPEC countries like Russia and Kazakhstan. The group works to control oil supply and keep prices stable. When members do not follow the rules, the market becomes more unstable.
U.S.-Iran talks add more risk
Another issue affecting oil prices is the ongoing talks between the U.S. and Iran. These talks are about Iran’s nuclear program. While the U.S. recently added new sanctions on Iran, many still hope for a deal.
If there is a deal, Iran could sell oil again. This would add more supply to the market, which may lead to lower prices.
So far, progress in these talks has been slow. But any change could move prices quickly.
U.S. oil stocks fall, giving support to prices
One good sign for oil prices came from the U.S. Energy Information Administration. It said that oil stockpiles dropped sharply last week. This means that demand for oil may be going up again in the U.S.
Falling inventories are often a sign that people and businesses are using more oil. That supports stronger prices.
What this means for oil prices
Oil prices are still unstable. On one side, better trade relations between the U.S. and China could lift demand. On the other side, problems within OPEC+ and ongoing global tensions create fear in the market.
Experts say the next few weeks are very important. A clear direction in trade and output decisions will shape where oil prices go next.
What to expect in the coming days
Traders are now waiting for the G7 summit next week. There could be more news about trade talks there. Also, OPEC+ is planning another meeting soon. Any updates could push prices up or down quickly.
As the oil market remains fragile, investors, traders, and governments will keep a close eye on every new event.
