SINGAPORE: Oil prices edged higher on Monday as optimism over a US-EU trade deal and potential US-China tariff negotiations eased concerns about economic slowdowns impacting fuel demand.
Brent crude futures rose 22 cents to $68.66 a barrel, while US West Texas Intermediate crude gained 22 cents to $65.38.
“The US-EU trade deal and possible extension of the US-China tariff pause are supporting global financial markets and oil prices,“ said IG markets analyst Tony Sycamore.
The agreement imposes a 15% tariff on most EU goods, avoiding a larger trade war between the two economic powerhouses.
US and Chinese negotiators are set to meet in Stockholm to discuss extending a tariff truce ahead of an August 12 deadline.
Meanwhile, Venezuela’s state-run PDVSA is preparing to resume operations under Biden-era licenses if US sanctions are lifted, potentially increasing global supply.
OPEC+ is expected to keep its current output policy unchanged at Monday’s meeting, with eight members already set to increase production by 548,000 barrels per day in August.
Analysts note that summer demand is helping absorb additional supply, with global oil demand rising by 600,000 bpd in July.
In the Middle East, Yemen’s Houthis warned of targeting ships linked to Israeli ports, adding geopolitical risks that could influence oil markets. – Reuters
