Oil prices inched higher in Asian trade on Thursday following steep losses in the prior session, as investors digested reports that OPEC+ plans to further ramp up production in June.

The commodity was supported by signals of potential tariff negotiations between the U.S. and China.
Brent Oil Futures expiring in June edged 0.3% higher to $66.33 per barrel, while West Texas Intermediate (WTI) crude futures gained 0.2% to $61.78 per barrel.

Both contracts settled nearly 2% lower on Wednesday in anticipation of increased supply from the Organization of the Petroleum Exporting Countries.

OPEC+ members eye faster output hikes - Reuters
Several OPEC+ nations are pushing to accelerate oil output hikes in June, extending May's surprise boost, as internal disputes over quota compliance deepen, Reuters reported Wednesday, citing sources familiar with the talks.

The proposed increase potentially matching May's 411,000 barrels per day rise comes as oil prices hover near four-year lows amid a U.S.-China trade war and oversupply concerns.

Eight OPEC+ countries will meet on May 5 to finalize the June plan, while divisions persist within the group, according to the report.

Saudi Arabia, frustrated by overproduction from Kazakhstan and Iraq, led the push for
May's accelerated increase, the report said.

Not all members are on board. Russia and others prefer slower, pre-agreed hikes to avoid further price declines, Reuters reported.

Signs of US-China tariff negotiations support oil
Despite the fall, oil prices were supported by expectations of potential tariff negotiations between the U.S. and China.

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The Wall Street Journal on Wednesday reported that the Trump administration is considering reducing tariffs on Chinese imports to de-escalate trade tensions.

Prior to this, Trump hinted at potential trade negotiations with China, saying a potential deal could lead to a "substantial" reduction in tariffs. But "it won't be zero," he added.

A reduction of duties could lead to increased economic activity in China, the world's largest crude importer.

US crude inventories jump unexpectedly - EIA
The U.S. Energy Information Administration (EIA) on Wednesday reported that crude oil inventories increased by 244,000 barrels to 443.1 million barrels for the week ending April 18, defying analysts' expectations of a 770,000-barrel draw.

Meanwhile, both gasoline and distillate inventories fell more than anticipated.

Gasoline stocks declined by 4.5 million barrels, surpassing the expected 1.4 million-barrel draw, while distillate inventories, including diesel and heating oil, dropped by 2.4 million barrels, far exceeding the forecasted 30,000-barrel decrease.

Source: Investing.com