LONDON: Oil prices rose on Monday after a trade deal between the United States and the European Union and U.S. President Donald Trump’s comments saying he would shorten a deadline he had set for Russia to end its war in Ukraine or face severe tariffs.
Brent crude futures were up $1.18, or 1.7%, at $69.62 a barrel by 1218 GMT while U.S. West Texas Intermediate crude was up $1.16, or 1.8%, at $66.32.
Trump said he was reducing the 50-day deadline he had given Russia, which was due to end in early September.
The trade deal between the U.S. and European Union and a possible extension of the U.S.-China tariff pause are supporting global financial markets and oil prices, IG markets analyst Tony Sycamore said.
Sunday’s framework trade pact with the EU sets a 15% U.S. import tariff on most EU goods while Trump said it also called for $750 billion of EU purchases of U.S. energy in the coming years.
Senior U.S. and Chinese officials meet in Stockholm on Monday to try to extend their tariff truce before an August 12 deadline.
The U.S.-EU deal removed another layer of uncertainty and the focus seems to be shifting back towards fundamentals, said PVM analyst Tamas Varga, adding that a strong dollar and falling Indian oil imports have weighed on crude prices.
On the supply side, an OPEC+ panel is unlikely to alter existing plans to raise oil output when it meets on Monday, four OPEC+ delegates told Reuters on July 25.
ING expects OPEC+ to at least complete the full return of 2.2 million barrels per day of additional voluntary supply cuts by the end of September.
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