Oil Prices Climb on U.S.-EU Trade Agreement, WTI Reaches $65.90

Oil prices rose on Monday as a trade agreement between the United States and the European Union eased concerns over potential tariffs and supported broader financial market sentiment.

Brent crude oil, against which Nigerian crude oil is priced, gained 76 cents or 1.1 percent to trade at $69.20 a barrel by 11:28 in Nigeria, while U.S. West Texas Intermediate (WTI) crude advanced 74 cents or 1.1 percent to $65.90 a barrel.

The U.S.-EU framework deal, announced on Sunday, averted the imposition of 30 percent tariffs on most EU goods and instead set import tariffs at 15 percent.

The agreement also included a commitment from the EU to purchase $750 billion worth of U.S. energy in the coming years, easing uncertainty in the global energy market.

According to IG Markets analyst Tony Sycamore, the deal, alongside expectations for an extension of the U.S.-China tariff pause, has bolstered investor confidence and lifted oil prices.

“The U.S.-EU agreement has removed another layer of trade uncertainty, redirecting market focus towards fundamentals,” he noted.

PVM analyst Tamas Varga added that while the strong dollar and lower crude oil imports from India have limited price gains, the resolution of trade tensions has shifted sentiment positively.

OPEC+ and Global Supply Outlook

On the supply side, delegates from the Organization of the Petroleum Exporting Countries and its allies (OPEC+) indicated that the panel meeting scheduled for Monday is unlikely to change existing plans to raise output.

ING analysts expect the group to complete the phased return of 2.2 million barrels per day of voluntary supply cuts by the end of September.

Separately, Venezuela’s state-run oil firm PDVSA is preparing to resume operations under oil swaps, pending approval from U.S. authorities, while geopolitical risks remain elevated in the Middle East.

Yemen’s Houthi rebels announced plans to target vessels linked to Israeli ports as part of escalating military actions tied to the Gaza conflict.

Market Outlook

The latest developments underscore a delicate balance between improving trade relations and persistent geopolitical risks.

Analysts note that while the U.S.-EU deal offers short-term support, a stronger dollar and demand-side concerns in Asia could temper further price gains.