Oil prices edged up on Thursday as investors weighed a weaker U.S. dollar, potential OPEC+ production increases, mixed economic news,  conflicting U.S. tariff signals and news from the Russia-Ukraine war. Brent crude futures rose 43 cents, or 0.7%, to settle at $66.55 a barrel. U.S. West Texas Intermediate (WTI) crude rose 52 cents, or 0.8%, to settle at $62.79.

In the U.S., the number of people filing for unemployment benefits rose slightly last week, indicating a resilient labor market despite economic turbulence caused by tariffs on imported goods.

Companies raised prices and cut 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 officials indicated in television interviews that they saw no urgency to change monetary policy as they seek more information to determine how trade tariffs are affecting the economy.

"The market is still trying to digest the data, as the employment statistics showed a resilient labor market while the Fed tempered optimism with comments that the unemployment rate may be affected by tariffs," analysts at energy consultancy Gelber and Associates said in a note.

The U.S. dollar suffered a major setback on Thursday, as investor gloom over the lack of real progress in defusing the U.S.-China trade war resurfaced.

A weaker U.S. currency makes dollar-priced commodities such as oil cheaper for buyers using other currencies.

SUPPLY UNCERTAINTY

Iranian Foreign Minister Abbas Araqchi said on Thursday he was ready to travel to Europe for talks on Tehran's nuclear program. France has indicated that European powers are ready for dialogue if Tehran shows serious engagement.

Successful talks with Europe and the U.S. would likely result in the lifting of sanctions on Iran's oil exports. Iran is OPEC's third-largest oil producer after Saudi Arabia and Iraq.

Trump criticized Russian President Vladimir Putin on Thursday after Russia hit Kyiv with missiles and drones overnight, saying "Vladimir, STOP!"

On Wednesday, Trump said the Ukrainian leader was obstructing peace talks to end Russia's war in Ukraine, which could allow more Russian oil to flow into global markets. Russia is one of the world's largest oil producers along with the U.S. and Saudi Arabia.

However, many European countries are trying to cut Russian oil imports because of the war. European Commission President Ursula von der Leyen said the commission would present a roadmap in the next two weeks to meet the EU's pledge to phase out Russian fossil fuels by 2027.

Russia is a member of the OPEC+ group. Reuters reported Wednesday that some OPEC+ members have suggested the group accelerate oil production increases for a second month in June.

"They're going to cram crude into a global economy that's 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 crude," Yawger said. (Newsmaker)

Source: Reuters