Trump’s deadline extension for EU trade talks aims to alleviate concerns about tariffs and fuel demand

Oil prices gained in early Asian trade on Monday after U.S. President Donald Trump extended a deadline for trade talks with the European Union, alleviating concerns regarding U.S. tariffs on the bloc that could negatively impact the global economy and fuel demand.

Brent crude futures rose by 37 cents, or 0.6 percent, to $65.15 a barrel by 00:01 GMT (currently above $64.45), while U.S. West Texas Intermediate crude increased by 34 cents, or 0.6 percent, to $61.87 a barrel (currently above $61.75).

“A nice push higher in crude oil and U.S. equity futures this morning after U.S. President Trump extended the deadline,” Reuters reported, citing IG market analyst Tony Sycamore.

Trump stated he agreed to extend the deadline for trade talks with the European Union until July 9, following comments from Ursula von der Leyen, president of the European Commission, who indicated that the bloc needed additional time to finalize a deal.

Trade and tariff headlines, along with ongoing fiscal concerns, are expected to be the primary wild card for risk sentiment and crude oil this week, Sycamore noted.

Read more: Oil prices fall to $64.11 on higher OPEC+ output prospects

OPEC+ output expectations limit gains

Brent and WTI extended their gains after settling 0.5 percent higher on Friday, as limited progress in U.S.-Iran nuclear talks eased worries about more Iranian oil returning to global markets, and as U.S. buyers took positions ahead of the three-day Memorial Day weekend.

Prices were also supported by data from energy services firm Baker Hughes, which revealed that U.S. firms, pressured by lower oil prices, reduced the number of operating oil rigs by 8 to 465 last week, marking the lowest level since November 2021.

However, gains were limited by expectations that the Organization of the Petroleum Exporting Countries and their allies, known as OPEC+, might decide to increase output by another 411,000 barrels per day (bpd) for July during next week’s meeting.