Crude oil prices started the week higher following news that U.S. President Donald Trump extended the deadline for a trade deal with the European Union until early July. This extension came after European Commission President Ursula von der Leyen said the EU needed more time to finalize an agreement. Trump had threatened to impose a 50% tariff on EU imports starting next month, citing slow progress in the talks.
IG analyst Tony Sycamore told Reuters, “Crude oil and U.S. stock futures are up sharply this morning after U.S. President Trump extended the deadline.”
Current Oil Prices Show Gains from Friday
As of this writing, Brent crude trades at $64.96 per barrel, while West Texas Intermediate (WTI) is at $61.68. Both benchmarks are up compared to Friday’s closing prices. However, Brent crude posted a weekly loss last week, weighed down by hopes for a U.S.-Iran nuclear deal and planned increases in OPEC+ production.
OPEC+ Production Increase Puts Downward Pressure on Prices
A key factor limiting oil price gains is OPEC+’s plan to increase production. The group agreed to add 411,000 barrels per day (bpd) in June and reportedly will add the same amount in July. This expected rise in supply is causing concern about oversupply in the market, which keeps prices in check despite positive trade developments.
U.S.-Iran Nuclear Talks Show Limited Progress
Meanwhile, the latest round of negotiations between the U.S. and Iran over Iran’s nuclear program concluded in Rome last Friday. Media reports indicate the talks made limited progress. Both sides remain firm on their demands but appear open to further discussions.
Iranian Foreign Minister Abbas Araghchi told Reuters, “We have just completed the most professional round of talks… We firmly expressed Iran’s position… I think we are now on a reasonable path, which in itself is a sign of progress.”
A U.S. official said, “The talks continued to be constructive—we made further progress, but there is still work to be done.”
Iranian Oil Return to Market Still Uncertain
The cautious tone suggests it may be some time before Iranian crude oil returns to the global market without restrictions. This means a significant drop in oil prices caused by an influx of Iranian oil is not imminent.
In summary, crude oil prices climbed on news of the U.S.-EU trade deal extension. However, planned increases in OPEC+ production and uncertain progress in U.S.-Iran nuclear talks continue to cap price gains. The market remains watchful for developments that could impact supply and demand.
