Oil prices advanced with Brent crude trading above $65 a barrel on renewed optimism over global trade and improving sentiment on equity markets.
The rally came after U.S. President Donald Trump announced a reprieve on higher tariffs for the European Union, pushing the deadline to July 9 following discussions with European Commission President Ursula von der Leyen. Trump, who last week threatened to impose a 50% tariff on EU goods starting June 1, cited ongoing negotiations for a potential trade deal.
The reprieve offered a temporary boost for oil, which has faced pressure since mid-January as escalating U.S. tariffs and corresponding retaliatory measures undermined demand prospects. Oil’s rebound this month has also been supported by easing tensions in the U.S.-China trade dispute.
Ongoing delays in EU tariffs have helped commodities, with crude posting modest gains, said Ole Hansen, head of commodities strategy at Saxo Bank A/S. Hansen highlighted that attention is also shifting toward the upcoming OPEC+ meeting, which could introduce a significant change to supply if idle capacity is brought back online.
The broader oil market continues to watch for policy adjustments from OPEC+, with producers scheduled to meet Sunday to decide on output for July.
Meanwhile, President Trump expressed hope for progress in nuclear negotiations with Iran after face-to-face talks in Rome last week, involving Iranian Foreign Minister Abbas Araghchi.
Both parties indicated that a diplomatic breakthrough remains possible, providing another variable to oil’s ongoing volatility.
