Oil prices rise as Trump extends EU trade deadline

May 26, 2025 (MLN): Oil prices gained in early Asian trade on Monday after U.S. President Donald Trump extended a deadline for trade talks with the European Union, easing concerns about U.S. tariffs on the bloc that could hurt the global economy and fuel demand.

Brent crude futures increased by $0.21, or 0.32%, to $64.99 per barrel.

West Texas Intermediate (WTI) crude futures rose by $0.18, or 0.29%, to $61.71 per barrel by [11:30 am] PST.

“A nice push higher in crude oil and U.S. equity futures this morning after U.S. President Trump extended the deadline,” IG market analyst Tony Sycamore said.

Trump announced the extension until July 9 following a request from European Commission President Ursula von der Leyen, who said the bloc required more time to reach a deal.

IG market analyst Tony Sycamore noted the upward momentum in crude and equities, saying, “A nice push higher in crude oil and U.S. equity futures this morning after U.S. President Trump extended the deadline.”

He added that trade and tariff headlines, alongside ongoing fiscal concerns, would remain the main wild cards for risk sentiment and crude oil prices this week.

Brent and WTI extended their gains after closing 0.5% higher on Friday.

The increase followed limited progress in U.S.-Iran nuclear talks, which eased fears of additional Iranian oil returning to global markets. Additionally, U.S. buyers were covering positions ahead of the Memorial Day weekend.

Support for prices also came from Baker Hughes data, which showed that U.S. energy firms reduced the number of operating oil rigs by 8 to 465 last week the lowest count since November 2021 amid pressure from lower oil prices.

However, the upward trend in prices was limited by expectations surrounding next week’s OPEC+ meeting, as CNBC reported.

The group, consisting of the Organization of the Petroleum Exporting Countries and its allies, could decide to boost output by another 411,000 barrels per day (bpd) for July.

This month OPEC+ could fully unwind its remaining 2.2 million bpd voluntary production cut by the end of October, after raising output targets by about 1m bpd for April, May, and June.

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