On Wednesday, oil prices declined by nearly 2% as reports indicated that OPEC+ might accelerate production increases in the coming month. However, the decline was limited following a news story suggesting that U.S. President Donald Trump could reduce tariffs on imports from China.
As of 10:39 a.m. EDT (1439 GMT), Brent crude futures decreased by $1.14, or 1.69%, settling at $66.30, while West Texas Intermediate crude in the U.S. fell by $1.17, or 1.84%, to $62.50.
Earlier in the trading session, Brent reached a peak of $68.65 per barrel, marking its highest level since early April.
Several members of OPEC+ are expected to propose accelerating oil production increases for a second consecutive month in June, according to three sources familiar with the ongoing talks.
This decision arises amid ongoing disputes among member nations regarding adherence to production quotas.
Both oil benchmarks saw a drop of over $2 following this news.
Additionally, the new energy minister of Kazakhstan stated that the nation’s interests would take precedence over OPEC+ commitments when determining its production levels.
Kazakhstan has faced criticism from other OPEC+ members for exceeding its assigned production quota.
According to the Energy Information Administration, U.S. crude oil stockpiles rose, while gasoline and distillate inventory levels showed larger-than-expected declines last week.
Crude inventories increased by 244,000 barrels to a total of 443.1 million barrels for the week ending April 18, contrasting with analysts’ predictions of a 770,000-barrel decline in a recent Reuters survey.
A potential stabilizer for prices emerged as the U.S. government was reported to be considering a reduction of tariffs on Chinese goods to ease tensions with Beijing, according to the Wall Street Journal.
These tariffs are anticipated to lower to a range of 50% to 65%, based on information from a White House official.
In other developments, the U.S. imposed new sanctions targeting an Iranian shipping tycoon whose operations manage the export of Iranian liquefied petroleum gas and crude oil valued at hundreds of millions.
After several days of criticizing the Federal Reserve for its reluctance to cut interest rates, Trump appeared to retract his earlier threats to dismiss Chair Jerome Powell, alleviating some investor concerns about economic uncertainty.