- Potential accelerated OPEC+ output increases weighs on market
- Kazakhstan to prioritise national interest in oil output
- US-China trade war could halve China's oil demand growth
LONDON, April 24 (Reuters) - Oil prices recovered some losses on Thursday as investors weighed a potential OPEC+ output increase against conflicting tariff signals from the White House and U.S.-Iran nuclear talks.
Brent crude futures were up 67 cents, or 1.01%, at $66.79 a barrel by 1220 GMT while U.S. West Texas Intermediate crude gained 75 cents, or 1.2%, to $63.02.
At those levels, prices have recouped about half of their losses from Wednesday, when prices slid almost 2% after Reuters reported that several OPEC+ members had suggested the group accelerate oil output increases for a second month in June.
Kazakhstan, which produces about 2% of global oil output and has repeatedly exceeded its quota over the past year, said it would prioritise national interests over OPEC+ in deciding production levels.
"Such defiance envisages looser oil balance but, more importantly, it implies that Kazakhstan de facto ceases to exist as a member of OPEC+, although it remains in the alliance for now," said PVM analyst Tamas Varga.
There have previously been disputes among OPEC+ members over compliance with production quotas, one of which resulted in Angola leaving the group in 2023.
"Further disagreement between OPEC+ members is a clear downside risk, as it could lead to a price war," ING analysts said.
Signs that the U.S. and China could be moving closer to trade talks supported prices.
China called for U.S. tariffs to be cancelled on Thursday, a day after the Wall Street Journal reported that the White House would be willing to lower its tariffs on China to as low as 50% to open up negotiations.
Rystad Energy analysts say that a prolonged U.S.-China trade war could cut China's oil demand growth in half this year to 90,000 barrels per day (bpd) from 180,000 bpd.
Meanwhile, the U.S. and Iran will hold a third round of talks this weekend on a possible deal to reimpose restraints on Tehran's uranium enrichment programme. The market is watching for any sign that a U.S.-Iran rapprochement could lead to an easing of sanctions on Iranian oil, which could bring supply back to the market.
However, the U.S. placed fresh sanctions on Iran's energy sector on Tuesday, which Iran's foreign ministry said showed a "lack of goodwill and seriousness" over dialogue with Tehran.
Reporting by Robert Harvey in London and Colleen Howe in Beijing Editing by David Goodman
Source: Reuters