Oil Strives to Break Free from Downward Spiral

Persistent Decline Amid Tariff Concerns

Futures contracts for crude oil continued their decline from the start of Monday’s trading session, May 26, 2025, as renewed fears over customs tariffs and their potential negative impacts on the U.S. and global economies resurfaced, alongside waning consumer confidence.

Relief in U.S.-EU Trade Talks

Despite the downward pressure, oil futures attempted a recovery on Monday, buoyed by reports of progress in trade negotiations between the United States and the European Union. This followed heightened trade tensions late last week, marked by stalled talks and threats from U.S. President Donald Trump to impose higher tariffs on European goods entering the U.S. Market reports indicated that Trump agreed to extend a 50% reduction in tariffs on European products until July 9, 2025, instead of the previously set deadline of June 1, 2025, injecting some optimism into the markets.

Oil Price Movements

U.S. crude oil futures settled at $61.51 per barrel, slightly down from the previous session’s close of $61.69. During the session, prices dipped to a low of $61.27 and peaked at $62.11, reflecting market volatility amid conflicting news.