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Oil prices rose on Monday, 26 May, after US President Donald Trump announced an extension of trade talks with the European Union until 9 July. This eased concerns about the potential introduction of new tariffs on imports from the EU, which could have a negative impact on global fuel demand and the global economy as a whole. This is reported by Reuters.
According to the latest data:
Brent rose by 26 cents (0.4%) to $65.04 per barrel.
WTI rose by 24 cents (0.39%) to $61.77 per barrel.
“Oil futures and US stocks are showing positive dynamics after the news of the postponement of the talks,” said Tony Sycamore, an analyst at IG. According to him, news about trade negotiations, tariffs and fiscal issues remain the main drivers of market sentiment this week.
In addition to the trade news, the market reacted positively to the lack of progress in the nuclear talks between the US and Iran, which reduces the likelihood of a massive return of Iranian oil to the markets. In addition, US investors are closing positions ahead of the three-day Memorial Day weekend.
A favourable factor was also the data from Baker Hughes, according to which the number of operating oil rigs in the US decreased by 8 to 465, the lowest since November 2021.
However, expectations of an increase in oil production by OPEC+ countries may limit further price growth. We are talking about a possible increase of 411 thousand barrels per day in July, which will be considered at the organisation’s meeting next week.
