Oil prices climbed on Monday after the U.S. and the EU struck a framework trade deal that imposes a 15 percent tariff on most EU goods, half the rate they had threatened, easing fears of a deeper trade war.
Brent crude rose to $68.66 a barrel, and U.S. West Texas Intermediate reached \$65.38.
That same day in Stockholm, U.S. and Chinese negotiators met to discuss extending their tariff pause beyond the August 12 deadline.
If they succeed, it would calm worries that steeper levies could slow economic growth and curb fuel demand.
On Sunday, alongside the U.S.–EU agreement, Venezuela’s state oil company PDVSA said it’s ready to resume joint-venture exports under swap licenses once U.S. authorizations return. Meanwhile, OPEC and its allies will convene at 1200 GMT to decide whether to stick with their plan to raise output by 548,000 barrels per day in August—a bid to defend market share as summer demand peaks.
Last Friday, oil sank to its lowest in three weeks amid global trade jitters and expectations of more Venezuelan supply. Still, JP Morgan analysts note that July saw world oil demand jump by 600,000 barrels per day, even as inventories swelled by 1.6 million barrels.
In the Middle East, Yemen’s Houthi fighters warned they would target any vessel linked to Israeli ports, adding fresh risk to already tense shipping lanes.
Taken together, these developments, from trade deals and tariff talks to OPEC+ meetings, Venezuelan restarts and Houthi warnings, show how governments and producers are pulling every lever they can to steady markets, protect their share and balance supply with demand.