Oil prices recovered some losses on Thursday after falling nearly 2 per cent in the previous session, with investors weighing a potential OPEC+ output increase against conflicting tariff signals from the White House and ongoing U.S.-Iran nuclear talks. Brent crude futures were up 53 cents, or 0.8 per cent, to $66.65 a barrel at 0706 GMT, while U.S. West Texas Intermediate crude was up 55 cents, or 0.88 per cent, to $62.82 a barrel. Prices had settled down 2 per cent in the previous trading session after Reuters reported that several OPEC+ members would suggest the group accelerate oil output increases for a second month in June, citing three sources familiar with the OPEC+ talks. “While a risk-on move lifted most risk assets yesterday, oil was left behind thanks to OPEC+ discord,” ING analysts wrote in a note. Kazakhstan, which produces about 2 per cent of global oil output and has repeatedly exceeded its quota over the past year, said it would prioritize national interest, rather than that of OPEC+, in deciding production levels, Reuters reported on Wednesday. There have previously been disputes among OPEC+ members over compliance with production quotas, one of which resulted in Angola exiting OPEC+ in 2023. “Further disagreement between OPEC+ members is a clear downside risk, as it could lead to a price war,” the ING analysts said. Signs that the U.S. and China could be moving closer to trade talks supported prices. The Wall Street Journal reported that the White House would be willing to lower its tariffs on China to as low as 50 per cent in order to open up negotiations. U.S. Treasury Secretary Scott Bessent said on Wednesday that current import tariffs – of 145 per cent on Chinese products headed into the U.S. and 125 per cent on U.S. products headed into China – were not sustainable and would have to come down before trade talks between the two sides could begin. White House Press Secretary Karoline Leavitt later told Fox News, however, that there would be no unilateral reduction in tariffs on goods from China. Rystad Energy analysts say a prolonged U.S.-China trade war could cut China’s oil demand growth in half this year to 90,000 barrels per day from 180,000 bpd. Trump is also mulling tariff exemptions on car part imports from China, the Financial Times reported on Wednesday. Potentially putting downward pressure on oil prices, the U.S. and Iran will hold a third round of talks this weekend on a possible deal to reimpose restraints on Tehran’s uranium enrichment program. The market is watching the talks for any sign that a U.S.-Iran rapprochement could lead to the easing of sanctions on Iranian oil and boost supply. But the U.S. on Tuesday put fresh sanctions on Iran’s energy sector, which Iran’s foreign ministry spokesperson said showed a “lack of goodwill and seriousness” over dialog with Tehran.