WTI price appreciates as President Trump extends the 50% tariff deadline on imports from the EU.
Oil attracts buyers amid rising geopolitical tensions in the Middle East.
Oil prices may struggle as OPEC+ could decide to raise output by another 411,000 barrels per day for July.
West Texas Intermediate (WTI) Oil price is trading around $61.50 per barrel during the Asian hours on Monday, extending its gains for the second successive day. Crude Oil prices gain ground amid easing concerns over a trade war between the United States (US) and the European Union (EU).
Bloomberg reported that US President Donald Trump agreed to extend the 50% tariff deadline on the European Union (EU) from June 1 to July 9 after having a phone call with European Commission President Ursula von der Leyen on Sunday. Von der Leyen also posted on social media that the EU was ready to engage in trade talks with the United States (US) but requires more time to reach a deal.
On Friday, President Trump said in a post on Truth Social to impose 50% tariffs on imports from the European Union after Brussels sent a not-so-good trade proposal to Washington. This has dampened global economic growth and weakened energy demand.
Oil prices also receive support from rising geopolitical tensions as Israel’s military plans to capture 75% of the Gaza Strip within the next two months. This could raise concerns about a broader regional conflict in the Middle East. Additionally, concerns over more Oil supply from Iranian oil to global markets decrease due to limited progress in US-Iran nuclear talks.
However, the upside of the Oil prices could be limited as the OPEC+, the Organization of the Petroleum Exporting Countries and their allies, could decide to raise output by an additional 411,000 barrels per day (bpd) for July at next week's meeting. The group may also unwind the remaining 2.2 million bpd voluntary production cut by the end of October, per Reuters.
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