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Oil prices rise after Trump extends EU Trade Talks deadline to July

Oil prices rise after Trump extends EU Trade Talks deadline to July

The oil prices rose in the early Asian trading on Monday, after U.S. president Donald Trump extended the deadline for trade negotiations with the European Union. This eased concerns over U.S. duties on the EU that could harm the global economy and fuel the demand.

Brent crude futures were up 37 cents or 0.6% to $65.15 a bar by 0001 GMT, while U.S. West Texas intermediate crude was up 32 cents or 0.6% at $61.87 a bar.

Tony Sycamore, IG's market analyst, said: "Crude oil and U.S. stock futures are up this morning following the extension of the deadline by U.S. president Trump."

Trump announced that he had agreed to extend the deadline for the trade talks between the United States and the European Union to July 9, after Ursula von der Leyen said that the European Union needed more time to reach a deal.

Sycamore stated that the headlines about trade and tariffs along with fiscal concerns will be the major wild card this week for crude oil and risk sentiment.

Brent and WTI continued to rise after ending 0.5% higher Friday, as the limited progress made in U.S. - Iran nuclear talks eased fears of Iranian oil returning on global markets. Also, U.S. buyers were covering positions before the three-day Memorial Day Weekend.

Baker Hughes, an energy services company, also released data that indicated U.S. companies, under pressure of lower oil prices and a reduction in the number operating oil rigs, had reduced the number to 465, the lowest level since November 2021.

At the next meeting, the Organization of the Petroleum Exporting Countries (OPEC+) and its allies could decide to boost output by 411,000 barrels a day for July.

This month, the group reported that it could complete the voluntary production cuts of 2.2 million barrels per day by the end October. It had already increased output targets for April, may and June by around 1 million barrels per day. Reporting by Florence Tan, Editing by Muralikumar Anantharaman

(source: Reuters)