Oil prices rose on Monday as optimism around global trade improved following a new trade deal between the United States and the European Union, while hopes for an extended truce in U.S.-China tariff tensions also supported sentiment.
By 3 pm AEST (5 am GMT), Brent crude futures were up 36 cents, or 0.5%, at US$68.78 per barrel. U.S. West Texas Intermediate (WTI) crude added 31 cents, or 0.5%, to US$65.48.
The U.S.-E.U. trade agreement, reached on Sunday, imposes a 15% tariff on most European imports, half the level previously threatened. The deal helped avert an escalation between two of the world's largest trading blocs, which together account for nearly one-third of global trade.
Investors had feared a breakdown in talks could slow economic growth and dampen fuel demand.
Attention now turns to a meeting in Stockholm scheduled for later Monday, where senior U.S. and Chinese negotiators are expected to discuss extending a truce on tariff hikes before the 12 August deadline.
Oil had settled lower on Friday, marking a three-week low amid trade uncertainties and expectations of additional supply entering the market from Venezuela.
Venezuelan state oil firm PDVSA is reportedly preparing to restart operations at its joint ventures, contingent on U.S. President Donald Trump reinstating authorisations that would allow partners to operate and export crude under swap arrangements.
Despite Monday’s modest rebound in oil prices, gains were capped by concerns over potential supply increases from OPEC+ producers.
The Joint Ministerial Monitoring Committee, comprising key ministers from OPEC and its allies, including Russia, is set to meet later on Monday, and is unlikely to alter existing plans to raise oil output.
