NEW YORK: Oil prices rose 2% on Monday after a trade deal between the US and the European Union, and US President Donald Trump’s announcement that he would shorten the deadline for Russia to end its war in Ukraine or face sanctions.
Brent crude futures were up $1.36, or 2%, at $69.80 a barrel by 10:58 a.m. EDT (1458 GMT), while US West Texas Intermediate crude rose $1.33, or 2%, at $66.49. Brent touched its highest price in 10 days after Trump said he was reducing the 50-day deadline he gave Russia over its war in Ukraine to 10-12 days.
The deal between the US and EU and a possible extension of the US-China tariff pause are also supporting global financial markets and oil prices, said Tony Sycamore, a market analyst at IG. The framework trade pact with the EU announced on Sunday sets a 15% US import tariff on most EU goods.
“Not only does it (the trade pact) give US producers a huge boost with this commitment, it also puts more pressure on (Russian President Vladimir) Putin to come to the table.” Senior US and Chinese officials are meeting in Stockholm on Monday to try to extend their tariff truce before an August 12 deadline.
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