Oil prices held steady Monday as U.S. President Donald Trump extended a deadline for trade talks with the European Union, easing concerns that higher tariffs could reduce fuel demand.
Brent crude futures slipped 17 cents to $64.61 a barrel by 8:35 a.m. ET. U.S. West Texas Intermediate crude fell 18 cents to $61.35 a barrel. Both contracts had risen earlier in the session after Trump delayed the implementation of 50% tariffs on EU imports until July 9.
Global markets climbed and the euro strengthened after Trump’s announcement, offering relief to investors worried about escalating trade tensions.
Trump also indicated potential new sanctions on Russia, calling President Vladimir Putin’s recent aerial attacks on Ukraine “absolutely CRAZY” in a social media post. The comments added to broader geopolitical risks that typically support oil prices.
Oil futures were buoyed Friday by limited progress in nuclear talks between the United States and Iran, reducing the likelihood of increased Iranian crude supplies in the near term. U.S. traders also covered positions ahead of the Memorial Day weekend, contributing to the gains.
Market data showed U.S. drillers cut oil rigs by eight last week, bringing the total count to 465, the lowest level since November 2021. The reduction signals a possible tightening in future supply.
Meanwhile, expectations remain that OPEC and its allies may raise output in the coming months. The group, known as OPEC+, is set to meet Sunday and could increase production by more than 400,000 barrels per day in July as part of a gradual unwinding of voluntary cuts.
