Noor Trends News, Technical Analysis, Educational Tools and Recommendations
Oil prices rose on Monday after U.S. President Donald Trump extended a deadline for trade talks with the European Union, easing fears of imminent tariffs that could have dampened global fuel demand.
As of 09:19 GMT, Brent crude futures were up 39 cents, or 0.6%, at $65.17 per barrel, while West Texas Intermediate (WTI) crude gained 33 cents, or 0.5%, to $61.86 per barrel.
Market activity was expected to remain subdued due to the U.S. Memorial Day holiday, which typically sees lighter trading volumes.
Trump’s decision followed a request from European Commission President Ursula von der Leyen, who urged for more time to strike a trade agreement. The new deadline for the talks has been set for July 9, providing temporary relief to market participants concerned about the impact of tariffs on economic growth and energy consumption.
Adding to geopolitical tensions, Trump said on social media that Russian President Vladimir Putin had “gone absolutely CRAZY” by launching the largest aerial assault of the war on Ukraine. He indicated that new sanctions on Moscow were under consideration, a move that could further disrupt global oil markets.
Brent and WTI prices also found support on Friday, as limited progress in U.S.-Iran nuclear talks dampened expectations of additional Iranian crude supply returning to global markets. The lack of a breakthrough in negotiations continues to underpin prices, given the potential for sanctions relief to unlock significant volumes of Iranian oil.
Traders also covered positions ahead of the long Memorial Day weekend, further supporting prices.
Meanwhile, U.S. rig count data from Baker Hughes added to bullish sentiment, with the number of operating oil rigs falling by eight to 465, marking the lowest level since November 2021. The decline signals the potential for tighter U.S. supply in the coming months.
However, gains were capped by speculation that OPEC+ may decide to raise output at its upcoming meeting on Sunday. Reports suggest the group is considering an additional 411,000 barrels per day (bpd) increase in July, part of a broader plan to gradually unwind its voluntary 2.2 million bpd production cuts by the end of October. OPEC+ has already lifted targets by about 1 million bpd for April through June.
