Oil Rises as U.S.–EU Deal Lifts Energy Market Optimism.
Oil prices climb following the U.S.-EU trade agreement
Oil prices edged higher on Monday as investors welcomed a trade agreement between the U.S. and the European Union that avoided steep 30% tariffs on most EU imports. Brent crude rose 76 cents to $69.20 per barrel, while WTI climbed 74 cents to $65.90, both up 1.1%.
The U.S.-EU pact, which sets a 15% tariff and includes commitments for $750 billion in EU purchases of U.S. energy, boosted sentiment across markets, according to IG Markets analyst Tony Sycamore. Hopes for an extension of the U.S.-China tariff truce ahead of the August 12 deadline also supported oil prices.
On the supply front, OPEC+ is expected to maintain its current output strategy, with plans to fully restore 2.2 million bpd of voluntary cuts by September, according to ING and OPEC+ sources. Additionally, Venezuela’s PDVSA is preparing to resume operations pending U.S. license reinstatements, while geopolitical tensions in the Middle East escalate with new threats from Yemen’s Houthis.
