Oil prices climbed on Monday, after the United States and European Union agreed on a tariff deal of 15 % on the majority of EU imports, cutting in half the previously imposed rate and easing fears of an escalating trade war between the two major global economies.
This alleviated concerns of economic slowdown and declining fuel demand, driving Brent crude futures 0.89 percent higher to $69.05 a barrel and U.S. West Texas Intermediate to rise 0.91 percent to $65.75 at 7:00 AM WAT.
The U.S.–EU accord provides welcome clarity to markets that once reflected worst-case higher tariffs, most likely to dampen industrial activity and oil demand. Monday’s gains were tempered by caution as international investors weighed competing signals from trade developments and supply outlook.
An OPEC+ market monitoring panel discussed on Monday, reviewing supply management policy, and said its delegates would not alter the plan for an August increase of 548,000 bpd in output. All 2.2 million barrels per day of voluntary cuts are expected to come back by end‑September, which means a minimum net gain in production of 280,000 bpd against rising summer fuel demand as producers seek to regain market share.
Meanwhile, Chinese and US officials met in Stockholm to extend their tariff ceasefire before an August 12 deadline, adding political nuance to oil price trends. Markets are monitoring events on both trade and OPEC+ action as the key drivers of crude price fluctuations.
