Oil gained for a second session after President Donald Trump said he would extend the deadline for the European Union to face so-called reciprocal tariffs, raising some optimism for easing trade tensions.
Brent climbed to trade near $65 a barrel and West Texas Intermediate was below $62. Trump on Friday threatened to impose a higher 50 per cent levy on the EU at the start of next month, but has given the bloc until July 9 to reach a trade deal after a phone call with Commission President Ursula von der Leyen.
Oil has been trending lower since mid-January as the fallout from Trump’s sweeping tariffs and retaliatory measures weigh on the outlook for demand. Plans by OPEC+ to boost idled production has added to bearish headwinds, with the group set to meet on Sunday to decide on supply policy for July.
“While an extension in the tariff deadline for the EU has provided some immediate support to the market, all attention this week will likely be on OPEC+ output policy,” said Warren Patterson, head of commodities strategy for ING Groep NV. “We believe the group will go with another sizeable supply increase, leaving the market well supplied over the second half of the year.”
Trump, meanwhile, said he had “very good” talks with Iranian officials over the weekend on his push to put limits on the Islamic Republic’s nuclear programs. The US and Iran held discussions last week in Rome that the Iranian foreign minister and lead negotiator, Abbas Araghchi, said could lead to an agreement in the next couple of meetings.
More stories like this are available on bloomberg.com
More Like This
Published on May 26, 2025