Oil prices rise amid strengthening trade optimism over US-EU deal

Oil prices rose on Monday after the US concluded a trade deal with the EU and may extend the pause on tariffs with China, dispelling fears that higher tariffs could negatively affect economic activity and limit fuel demand, writes UNN with reference to Reuters.

Details

Brent crude futures rose 20 cents, or 0.29%, to $68.64 a barrel by 03:36 GMT (06:36 Kyiv time). US West Texas Intermediate crude futures traded at $65.31 a barrel, up 15 cents, or 0.23%.

The trade deal between the US and the EU and the possible extension of the tariff pause between the US and China are supporting global financial markets and oil prices, noted IG Markets analyst Tony Sycamore.

"With the risk of a protracted trade war and the importance of August tariff deadlines gradually diminishing, markets have reacted positively," he added in his note.

The framework trade agreement signed on Sunday between the US and the EU sets an import duty of 15% on most EU goods, which is half the threatened rate. This agreement prevented a larger trade war between the two allies, which account for almost a third of global trade, and could limit fuel demand.

"The largest of all ever concluded": US and EU sign trade agreement27.07.25, 21:40 • 5649 views

Also scheduled for Monday is a meeting of high-ranking US and Chinese officials in Stockholm, the goal of which is to extend the tariff truce until August 12 to prevent a sharp increase.

Oil prices on Friday reached their lowest level in three weeks amid fears about global trade and expectations of increased oil supplies from Venezuela.

Brent oil price reached a weekly high25.07.25, 10:23 • 3821 view

While prices rose slightly on Monday, the increase was limited by the prospect of further easing of OPEC+ supply restrictions. The group will hold a meeting on Monday.

Four OPEC+ delegates said last week that it was unlikely that the eight member countries would recommend changing existing plans to increase oil production by 548,000 barrels per day in August, although another source said it was too early to draw conclusions.

ING expects OPEC+ to at least fully return 2.2 million barrels per day within additional voluntary supply cuts by the end of September.

This means a supply increase in September of at least 280,000 barrels per day. However, there are clearly opportunities for a more active increase.

The group of producers aims to restore its market share, while summer demand helps absorb additional barrels.

JP Morgan analysts said that global oil demand increased by 600,000 barrels per day in July compared to the same period last year, and global oil inventories increased by 1.6 million barrels per day.

In the Middle East, Yemeni Houthis said on Sunday that they would attack vessels of companies doing business with Israeli ports, regardless of their nationality, as part of what they called the fourth phase of military operations against Israel in connection with the conflict in the Gaza Strip.

Yemeni Houthis threaten to attack all Israeli-linked ships28.07.25, 04:10 • 10179 views