SINGAPORE: Oil prices rose on Monday after the US clinched a trade deal with the EU and may extend a tariff pause with China, relieving concerns that higher levies could have hurt economic activity and limited fuel demand.
Brent crude futures inched up 61 cents, or 0.89 percent, to $69.05 a barrel by 8:47 a.m. Saudi time, while US West Texas Intermediate crude stood at $65.75 a barrel, up 59 cents, or 0.91 percent.
The US-European Union trade deal and a possible extension in the US-China tariff pause are supporting global financial markets and oil prices, IG markets analyst Tony Sycamore said.
“With the risk of a prolonged trade war and the importance of the August tariff deadlines being steadily defused, markets have responded positively,” he added in a note.
Sunday’s US-EU framework trade pact sets an import tariff of 15 percent on most EU goods, half the threatened rate. The deal averted a bigger trade war between two allies that account for almost one-third of global trade and could crimp fuel demand.
