Oil prices are rising on global markets. As of 04:33 GMT, Brent crude oil futures increased by 26 cents, or 0.4%, to $65.04 per barrel. Meanwhile, the price of West Texas Intermediate (WTI) oil rose by 24 cents or 0.39%, to $61.77 per barrel.
This is reported by Finway
Experts attribute this to U.S. President Donald Trump’s postponement of the introduction of a 50% tariff on imports from the European Union (EU) until July 9.
“Ursula von der Leyen, President of the European Commission, called me to request an extension of the June 1 deadline for the implementation of the 50% tariff on trade with the European Union. I agreed to the extension – until July 9, 2025. It was an honor for me to do so”
. This decision by Trump has alleviated concerns about a potential decrease in fuel demand due to a slowing global economy.
Reasons for Rising Oil Prices
An additional factor contributing to the price increase was the report of a reduction in the number of drilling rigs by American oil companies, which has led to their lowest level since November 2021. Experts believe this is due to low oil prices.
However, the rise in oil prices is limited by expectations of a significant increase in production within OPEC+ (the alliance of oil-exporting countries and oil-producing nations). Among the possible options is an increase in production by 411,000 barrels per day in July.
“The oil market is already feeling pressure from OPEC+’s accelerated production growth strategy. … Price increases are likely to be limited”
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In turn, President of the European Commission Ursula von der Leyen noted that the EU has enough time until July 9 to reach a trade agreement with the U.S., emphasizing that “Europe is ready to negotiate quickly and decisively. The EU and the U.S. share the most important and closest trade relations in the world.”