Oil rates increase on US-EU trade agreement
(MENAFN) Oil prices continued to rise on Monday following the announcement of a significant trade agreement between the United States and the European Union, which helped ease fears over global oil supply. At the same time, uncertainty surrounding the U.S. Federal Reserve’s future interest rate decisions kept market participants wary.
Brent crude, the international oil benchmark, rose by approximately 0.85% to reach $68.17 per barrel as of 10:07 a.m. local time (0707 GMT), up from $67.59 at the close of the previous trading session. Meanwhile, the U.S. benchmark, West Texas Intermediate (WTI), increased by 0.91%, trading at $65.41 per barrel compared to $64.82 the day before.
The price surge followed Sunday’s announcement of a new trade agreement between Washington and Brussels, effectively ending months of trade uncertainty. U.S. President Donald Trump revealed the deal after meeting with European Commission President Ursula von der Leyen at his Turnberry golf resort in Scotland.
"I'm glad we reached a deal today instead of continuing the back-and-forth," Trump said, alongside von der Leyen. He described the agreement, which includes a 15% U.S. tariff on EU goods—down from a previously threatened 30%—as mutually beneficial.
As part of the agreement, the EU committed to investing $600 billion in the U.S. economy, while also agreeing to purchase $750 billion worth of American energy and military products. Trump highlighted the importance of energy in the agreement during a joint press briefing.
Von der Leyen also welcomed the breakthrough, stating, “This is a major trade deal between the two largest economies in the world, and it's a significant achievement.”
Market analysts suggest the deal could stimulate economic activity across both regions and increase demand for energy, contributing to the current upward trend in oil prices.
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