Oil prices rose for a second straight session after U.S. President Donald Trump extended the deadline for imposing reciprocal tariffs on the European Union, sparking hopes of easing trade tensions.
- Brent crude climbed near $65 a barrel
- West Texas Intermediate hovered just below $62
Trump, who had threatened a 50% tariff on the EU starting next month, granted an extension until July 9 following a phone call with European Commission President Ursula von der Leyen.
Oil markets have been under pressure since mid-January due to tariff-related uncertainty and OPEC+ plans to boost production, adding bearish sentiment. The group is scheduled to meet Sunday to decide on July output policy.
“While the EU deadline extension provides short-term support, the spotlight now shifts to OPEC+,” said Warren Patterson of ING. He expects a sizable supply increase, which could leave markets well supplied in the second half of 2025.
Trump also noted progress in talks with Iran over its nuclear program. Weekend discussions between U.S. and Iranian officials, including Foreign Minister Abbas Araghchi, could lead to an agreement in the coming meetings.