Oil Steady as Traders Weigh Trump’s Tariff Pledge on EU Goods
Oil was steady as markets weighed the prospect of easing trade tensions after President Donald Trump said he would extend the deadline for the European Union to face so-called reciprocal tariffs.
Brent traded near $65 a barrel and West Texas Intermediate below $62. Trump on Friday threatened to impose a 50% higher levy on the EU as early as 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 impact of Trump’s massive tariffs and retaliatory measures weighed on the demand outlook. OPEC+’s plan to increase idle production has added to the bearish drag, with the group set to meet on Sunday to decide on supply policy for July. “While the extension of the tariff deadline for the EU has provided immediate support to the market, all eyes this week will likely be on OPEC+ production policy,” said Warren Patterson, head of commodity strategy for ING Groep NV.
"We're confident that the group will increase supply quite substantially, so the market will be well supplied through the second half of the year." Meanwhile, Trump said he had "very good" talks with Iranian officials over the weekend about his push to curb the Islamic Republic's nuclear program. The U.S. and Iran held discussions last week in Rome that Iran's foreign minister and chief negotiator, Abbas Araghchi, said could lead to a deal in the next two meetings.
Source: Bloomberg
