Key points
- Brent crude futures rose 26 cents, or 0.4 per cent, to $65.04 a barrel by 0433 GMT
- Trump has agreed to delay EU tariffs until July 9
- Brent and WTI extended gains after settling 0.5 per cent higher on Friday
ISLAMABAD: Oil prices gained on Monday after United States (US) President Donald Trump extended a deadline for trade talks with the European Union, easing concerns about US tariffs on the bloc that could hurt the global economy and fuel demand.
Brent crude futures rose 26 cents, or 0.4 per cent, to $65.04 a barrel by 0433 GMT while US West Texas Intermediate crude was up 24 cents, or 0.39 per cent, at $61.77 a barrel, according to Reuters.
“A nice push”
“A nice push higher in crude oil and US equity futures this morning after US President Trump extended the deadline,” IG market analyst Tony Sycamore said.
Trump said he agreed to extend a deadline for trade talks with the European Union until July 9 after Ursula von der Leyen, president of the European Commission, said the bloc needed more time to strike a deal.
A nice push higher in crude oil and US equity futures this morning after US President Trump extended the deadline.” – IG market analyst Tony Sycamore
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 said.
Limited progress
Brent and WTI extended gains after settling 0.5 per cent higher on Friday as limited progress in US-Iran nuclear talks alleviated concerns of more Iranian oil returning to global markets and as US buyers covered positions ahead of the three-day Memorial Day weekend, according to Reuters.
Sharp rebound
According to Euro News, stock futures surged after US President Donald Trump agreed to postpone the planned 50 per cent tariffs on the European Union, but the US dollar remained under pressure amid waning investor confidence in US assets, pushing the euro to a one-month high.
US President Donald Trump announced on Sunday that he had agreed to delay the implementation of a 50 per cent tariff on EU imports to 9 July, following a phone call with European Commission President Ursula von der Leyen. The announcement sparked a sharp rebound in US stock futures and is expected to boost European equities on Monday.
