Oil prices rose on Monday after the United States agreed on a 15 per cent trade tariff with the European Union.
The deal relieved concerns that higher levies could have hurt economic activity and limited fuel demand.
Brent crude futures further rose by 61 cents, or 0.89%, to $69.05 a barrel by 7:00 AM WAT, while U.S. West Texas Intermediate crude stood at $65.75 a barrel, up 59 cents, or 0.91%.
Sunday’s U.S.-EU framework trade pact sets an import tariff of 15% on most EU goods, half the threatened rate. The deal averted a bigger trade war between two allies that account for almost one-third of global trade and could crimp fuel demand.
Also set for Monday is a meeting in Stockholm of senior U.S. and Chinese negotiators aiming to extend before an August 12 deadline a truce holding off sharply higher tariffs.
Oil prices settled on Friday at their lowest in three weeks, weighed down by global trade concerns and expectations of more oil supply from Venezuela.
Though prices were up slightly on Monday, gains were limited by the prospect of OPEC+ further easing supply curbs.
A market monitoring panel of the Organization of the Petroleum Exporting Countries and its partners will hold on Monday.
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It is unlikely to recommend altering existing plans by eight members to raise oil output by 548,000 barrels per day in August, four OPEC+ delegates said last week, though Reuters quoted another source saying it was too early to determine what the fresh cuts will be.
ING expects OPEC+ will at least complete the full return of 2.2 million barrels per day of the additional voluntary supply cuts by the end of September.
That would work out to a supply hike in September of at least 280,000 barrels per day.
The producer group is keen to recover market share while summer demand is helping to absorb the extra barrels.
JP Morgan analysts said global oil demand rose by 600,000 bpd in July on year, while global oil stocks rose 1.6 million bpd.
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