Oil Prices Rise as Trump Extends EU Trade Talks Deadline to July
TEHRAN (Tasnim) - Oil prices rose on Monday after US President Donald Trump extended the deadline for trade talks with the European Union, easing fears over potential tariffs that could harm global economic growth and energy demand.
Brent crude futures gained 26 cents, or 0.4%, to $65.04 per barrel by 0433 GMT.
US West Texas Intermediate (WTI) crude rose 24 cents, or 0.39%, to $61.77 a barrel.
"A nice push higher in crude oil and US equity futures this morning after US President Trump extended the deadline," said Tony Sycamore, a market analyst at IG.
Trump announced he had agreed to push back the deadline for trade negotiations with the EU to July 9.
This followed a request from European Commission President Ursula von der Leyen, who said the bloc needed more time to reach an agreement.
"Trade and tariff headlines, along with ongoing fiscal concerns, are going to be the main wild card for risk sentiment and crude oil this week," Sycamore added.
Oil benchmarks built on Friday's gains, when Brent and WTI both settled 0.5% higher.
That boost came as slow progress in US-Iran nuclear talks reduced fears of a surge in Iranian crude exports.
Buying activity from US traders ahead of the Memorial Day holiday weekend also contributed to the uptick.
Support also came from Baker Hughes data showing US energy firms cut oil rigs by eight to 465 last week — the lowest level since November 2021 — amid pressure from falling prices.
However, expectations that the Organization of the Petroleum Exporting Countries and allies (OPEC+) may raise output next week capped further gains.
The group could increase production by another 411,000 barrels per day (bpd) for July.
Suvro Sarkar, lead energy analyst at DBS Bank, said oil prices were already facing headwinds from OPEC+'s faster output increases and what he called a "mini oil price war".
"Any price gains are likely to be dampened by the OPEC+ decision in coming days," he said.
Reuters reported earlier this month that the group could fully unwind its remaining 2.2 million bpd voluntary production cuts by October.
OPEC+ has already increased production targets by about 1 million bpd for April through June.
Warren Patterson, head of commodities strategy at ING, said in a client note that higher output should keep the oil market well supplied in the second half of the year.
