Photo caption: Oil
Oil prices were little changed on Thursday as investors weighed a potential OPEC+ output increase, mixed economic news, conflicting tariff signals from the White House and news from the Russia-Ukraine war.
Brent crude futures rose 10 cents, or 0.2%, to $66.22 a barrel at 11:49 a.m. EDT (1549 GMT). U.S. West Texas Intermediate (WTI) crude rose 16 cents, or 0.3%, to $62.43.
In the U.S., the number of people filing for unemployment benefits rose marginally last week, suggesting a resilient labor market despite economic turbulence caused by tariffs on imported goods.
Businesses are increasing prices and cutting financial guidance due to higher costs stemming from U.S. President Donald Trump’s trade war, which has also roiled global supply chains.
U.S. Federal Reserve Bank of Cleveland President Beth Hammack called for patience on monetary policy and did not rule out changes by June if data suggested action was needed.
Analysts have said Trump’s unsteady tariff policy has so far stopped the Fed from raising or lowering interest rates. Central banks hike rates in order to fight inflation in an overheated economy or lower them to fight a recession and boost growth.
U.S. Treasury Secretary Scott Bessent said high tariffs between the U.S. and China are not sustainable, signaling possible moves to ease the trade war between the world’s two largest economies that has fed recession fears.
In Germany, Europe’s biggest economy, business morale unexpectedly rose in April though expectations were gloomier as companies worried about U.S. tariffs.
SUPPLY WORRIES
Trump criticized Russian President Vladimir Putin on Thursday after Russia pounded Kyiv with missiles and drones overnight, saying “Vladimir, STOP!”
On Wednesday, Trump said Ukraine’s leader was hampering peace talks on ending Russia’s war in Ukraine, which could allow more Russian oil to flow to global markets.
Still, many European countries are trying to phase out imports of Russian oil due to the war. European Commission President Ursula von der Leyen said the commission will present a roadmap in the next two weeks on keeping an EU pledge to quit Russian fossil fuels by 2027.
Russia is a member of the OPEC+ group. Reuters reported on Wednesday that several OPEC+ members had suggested the group accelerate oil output increases for a second month in June.
“They would be stuffing barrels into a global economy that is already struggling with U.S. tariffs and a trade war between the two largest global economies – the U.S. vs. China,” Bob Yawger, director of energy futures at Mizuho, said in a note.
“OPEC+ would be hard pressed to pick a worse time to add barrels,” Yawger said.
The energy ministry of Kazakhstan said that country was interested in market predictability and the demand and supply balance. Kazakhstan has angered other OPEC+ members by producing more than its allotted quota.
“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.
=== Reuters ===
