US dollar declines amid trade war uncertainty

Global oil prices rose aggressively once more on Thursday in European trade, approaching three-week highs as markets look forward to the new round of US-Iran nuclear talks. 

The prices remain under pressure as some OPEC+ members proposed another steep production hike in June for the second month in a row.

Prices

US crude rose 1.3% today to $63.06 a barrel, with a session-low at $62.14.

Brent added 1.4% to $67.05 a barrel, with a session-low at $66.05.

On Wednesday, US crude lost 2% away from three-week high at $64.83, while Brent shed 2.5% away from April 4 highs at $68.61.

Nuclear Talks

Iran and the US will hold the third round of talks by the end of this week for a potential agreement on restricting Iran’s nuclear program.

Any progress in talks would be taken as a sign of a potential lessening of US sanctions on Iranian crude exports, which would increase supplies.

US President Trump’s administration issued new sanctions targeting Iranian oil exports, including sanctions on Chinese refineries, raising the pressure on Tehran amid talks on Iran’s nuclear program.

Potential Trade Deal

Trump asserted the US goal of reaching a fair trade deal with China, however, he once more threatened new tariffs on Beijing if no deal is reached.

US Treasury Secretary Scott Bessent said Trump didn’t propose to unilaterally remove tariffs from China, asserting the US will not cut tariffs on China by over 100%.

Bessent said there’s no clear timeline for communications between both sides, with the process of complete trade rebalancing potentially taking two or three years.

Reports also indicated that Trump is considering tariff relief for Chinese auto parts under pressure from the  US auto industry.

OPEC+ 

Reuters reported that several OPEC+ members are proposing a production hike in June for the second month in a row, which would pressure prices even further.