Oil prices edged higher on Thursday with signs of easing US-China trade tensions and US President Donald Trump's remarks on US Federal Reserve (Fed) rates.
International benchmark Brent crude rose by around 0.61%, trading at $65.67 per barrel at 10.44 a.m. local time (0744 GMT), up from $65.27 at the previous session's close.
US benchmark West Texas Intermediate increased by about 0.7%, reaching at $62.62 per barrel, compared to its prior session close of $62.18
While the US administration's protectionist trade policy and harsh economic rhetoric continue to influence oil prices, President Trump's softened tone toward Fed Chairman Jerome Powell and China is drawing attention.
In a shift from his earlier comments, Trump said he has no plans to remove Powell from his role at the Fed.
Emphasizing that the Fed Chair should be more proactive in cutting interest rates, Trump stated, 'We think the Fed should lower the interest rate. In our opinion, this is the perfect time to cut. We expect Powell to act early or on time, rather than late on this issue.'
Experts note that a rate cut, combined with a weakening dollar and increased economic activity, could further push oil prices upward.
Meanwhile, US Treasury Secretary Scott Bessent stated that the current 145% import and 125% export tariffs in US-China trade are unsustainable.
He added that the tariffs must be reduced for negotiations between the two countries to begin.
Speaking on the ongoing 'trade war' with China, Trump said, 'We're going to be very nice. They're going to be very nice. And we'll see what happens. But ultimately, they have to make a deal because otherwise they're not going to be able to deal in the US. And we want them involved but they and other countries will have to make a deal.'
TTrump also noted that the US is actively negotiating customs and trade agreements with various countries, aiming for deals that are 'fair' to both the US and its partners.
'We're going to be setting the deal and it will be a fair deal for everybody and I think it's a process that is going to go pretty quickly. We've spoken to many, many countries and we're getting their views on things.' he added.
Expectations that an agreement may be reached between the US and China and plans from OPEC and its allies, collectively known as OPEC+, to raise output in June contributed to rising supply pressures and limited the price increase.
Eight OPEC+ countries are scheduled to meet on May 5 to discuss the production plan.
Kazakhstan reported that its oil output in the first two weeks of April fell by 3% compared to the March average, yet production remains above its OPEC+ quota.
The Kazakh Energy Minister stated that when deciding on production levels, national interests would take precedence over OPEC+ goals, and that the country would not restrict independent oil companies or shut down its own fields, as doing so would harm future output.
By Humeyra Ayaz
Anadolu Agency
energy@aa.com.tr