Oil prices rise after US–EU trade talks deadline extended to July

On Monday, oil prices rose on the back of US President Donald Trump's decision to grant an extension of the deadline for trade negotiations with the European Union. That contributed to easing of concerns over tariffs against the bloc that may damage the world economy and the volumes of fuel consumption.

As a result, prices of both benchmarks Brent and WTI rose 0.6%.

Trump said he decided to extend the period for the negotiations until July 9 following a message from European Commission President Ursula von der Leyen that the bloc requires more time to reach the deal.

IG expert Tony Sycamore noted that news on tariffs and worries over the US budget deficit will be the main drivers of oil prices this week. 

The oil market was also supported by data showing the overall number of active oil rigs in the US fell by 8 to 465 last week, according to the Baker Hughes statistics. This is the weakest figure since November 2021.

However, the rise in oil prices is curbed by an anticipated decision by OPEC+ to continue increasing production. According to Reuters, the alliance may lift the remaining restrictions on crude production during its meeting in June.