Oil Falls as OPEC Fears Outweigh Possible Easing of China Levies
Oil fell after a Reuters report that some OPEC+ members will seek an accelerated output increase overshadowed an optimistic turn in trade talks between the US and China.
West Texas Intermediate futures sank 2.2% to settle just above $62 a barrel. The report compounded pressure from an earlier item from the news service that Kazakhstan’s newly appointed energy minister said the country is unable to reduce production at its three largest projects, which was later walked back.
The commodity pared some losses on a Wall Street Journal report that US tariffs on China could be cut by more than half in some cases. Treasury Secretary Scott Bessent later told reporters that President Donald Trump hasn’t offered to take down US tariffs on China on a unilateral basis and that a full trade deal with the country may take two to three years.
Trump’s earlier comments that he doesn’t plan to fire Federal Reserve Chair Jerome Powell spurred a relief rally in stocks and provided a floor to crude prices.
Oil has declined sharply this month, touching a four-year low at one point, driven by investors’ fears that the onslaught of tariffs and counter-levies between the US and its biggest trading partners will sap crude demand. The drop has been compounded by the OPEC+ alliance’s decision to bring back production at a faster-than-expected pace, reviving concerns about a supply glut.
Prices:
WTI for June delivery fell 2.2% to settle at $62.27 a barrel in New York.
Brent for June settlement lost 2% to settle at $66.12 a barrel.
Source: Bloomberg
