People walking past an Opec logo during a climate change conference —Reuters
LONDON: Oil prices rose on Monday after a trade deal between the U.S. and the European Union and U.S. President Donald Trump's announcement that he would shorten the deadline set for Russia to end its war in Ukraine or face severe tariffs.
Brent crude futures were up $1.63, or 2.4%, at $70.07 a barrel by 1317 GMT while U.S. West Texas Intermediate crude rose $1.62, or 2.5%, at $66.78.
Brent was trading close to its highest price in nearly 10 days after Trump said he was reducing the 50-day deadline he gave Russia over its war in Ukraine to 10-12 days.
The deal between the U.S. and EU and a possible extension of the U.S.-China tariff pause also are supporting global financial markets and oil prices, said Tony Sycamore, a market analyst at IG.
The framework trade pact with the EU that was announced on Sunday sets a 15% U.S. import tariff on most EU goods. Trump also said it called for $750 billion of EU purchases of U.S. energy in the coming years.
Senior U.S. and Chinese officials are meeting in Stockholm on Monday to try to extend their tariff truce before an August 12 deadline.
The U.S.-EU deal removed another layer of uncertainty and the focus seems to be shifting back towards fundamentals, said Tamas Varga, an analyst at PVM, adding that a strong dollar and falling Indian oil imports have weighed on crude prices.
On the supply side, an OPEC+ panel is unlikely to alter existing plans to raise oil output when it meets on Monday, four OPEC+ delegates told Reuters on July 25.
ING expects OPEC+, the group that includes the Organization of the Petroleum Exporting Countries and allies like Russia, to at least complete the full return of 2.2 million barrels per day of additional voluntary supply cuts by the end of September. - Reuters
