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Oil prices rise as US-EU deal lifts trade optimism - YAHOO FINANCE
Oil (BZ=F, CL=F)
Oil prices climbed in early European trading on Monday following a trade agreement between the United States and the European Union, easing fears of escalating transatlantic trade tensions ahead of a key tariff deadline.
Brent (BZ=F) crude futures gained 0.9% to trade at $69.04 per barrel, at the time of writing, while West Texas Intermediate (CL=F) futures climbed by 0.8% to $65.70 a barrel.
The modest gains came after Washington and Brussels struck a last-minute trade pact on Sunday, ahead of US president Donald Trump’s 1 August deadline for a new round of tariffs on EU imports. Under the agreement, most European goods will face a 15% import tariff, half the rate initially proposed by the US administration.
The agreement, which averts a broader trade conflict between two economies that together account for nearly a third of global trade, helped support sentiment in financial markets, including oil.
"With the risk of a prolonged trade war and the importance of the August tariff deadlines being steadily defused, markets have responded positively," IG markets analyst Tony Sycamore said in a note.
The deal also raised hopes of further de-escalation in global trade tensions, including a potential extension of the current tariff pause between Washington and Beijing.
However, gains in crude prices were tempered by investor caution ahead of a meeting of the Opec+ alliance on Monday. The group is expected to review the pace at which it is easing supply curbs implemented during the pandemic-induced downturn.
