Oil prices climbed after the US and European Union reached a trade agreement just before President Donald Trump’s tariff deadline of August 1. Brent crude hovered near $69 a barrel after falling 1.1% on Friday, while West Texas Intermediate traded above $65.
Though the EU still faces 15% levies on most exports, sentiment improved following the deal. However, Trump and European Commission President Ursula von der Leyen appeared to disagree on some aspects of the agreement.
“The market already had some idea of expected tariffs from earlier deals,” said Soni Kumari, commodity strategist at ANZ. She added that oil will likely stay range-bound until more clarity emerges from future trade talks and the upcoming OPEC+ decision on supply.
Concerns remain over the broader global economic outlook, as Trump’s aggressive trade stance and threats of retaliation have pressured commodity markets. Analysts also warn that OPEC+’s recent decision to raise output could lead to a supply glut later in the year.
An OPEC+ committee is set to meet Monday to assess market conditions ahead of a Sunday gathering to finalize production targets for September. Delegates anticipate another quota hike.
Meanwhile, the US has also secured a trade agreement with Japan and is aiming to complete deals with other partners before the August 1 tariff deadline. US and Chinese officials are also expected to meet Monday, with reports suggesting a possible extension of their current tariff truce.