Oil prices edged higher on Thursday as markets digested a mix of geopolitical developments, economic data, and supply signals. Brent crude settled at $66.55 per barrel, up $0.43 or +0.65% from Wednesday’s close. U.S. West Texas Intermediate (WTI) rose $0.52, or +0.83%, to finish at $62.79 per barrel.
The potential for increased supply weighed on sentiment, but Thursday’s recovery was supported by a weaker U.S. dollar, which makes dollar-denominated commodities like oil cheaper for foreign buyers. Additionally, U.S. economic data showed a slight uptick in weekly jobless claims, suggesting the labor market remains resilient despite mounting trade pressures.
Investor focus remained on U.S. trade policy, with conflicting signals about tariff reductions on Chinese imports creating uncertainty. A Wall Street Journal report suggested tariffs could be lowered to 50–65%, but no decisions have been finalized. U.S. President Donald Trump also escalated tensions with Russia, criticizing Moscow’s renewed attacks on Kyiv, while also suggesting Ukraine was impeding peace efforts—further complicating the outlook for Russian oil exports.
On the supply side, Iranian Foreign Minister Abbas Araqchi expressed willingness to restart nuclear negotiations with Europe, raising the possibility of sanctions relief and the return of Iranian barrels to the market. Meanwhile, OPEC+ discussions continued, with some members reportedly pushing for a second consecutive month of accelerated output increases, despite concerns this could flood a market already sensitive to economic headwinds.
Despite the day’s gains, analysts remain cautious. Energy consulting firm Gelber and Associates noted that while U.S. product inventories showed bullish draws, the broader economic impact of tariffs and geopolitical instability continues to create volatility.