Oil prices edged higher on Monday, May 26, 2025, after U.S. President Donald Trump extended a deadline for trade talks with the European Union, temporarily easing concerns over tariffs that could impact global fuel demand.
Brent crude rose by 39 cents to $65.17 a barrel, while U.S. West Texas Intermediate (WTI) increased by 33 cents to $61.86 per barrel, reflecting cautious optimism in the markets.
Trump announced the new July 9 deadline after European Commission President Ursula von der Leyen requested more time to finalize a trade deal with the U.S.
The move calmed fears of immediate economic friction between the U.S. and EU, which could have curbed energy consumption across the region.
UBS analyst Giovanni Staunovo noted that Trump’s tariff extension and threats of new sanctions on Russia provided moderate support to oil prices, despite low trading volumes due to the U.S. Memorial Day holiday.
Trump also criticized Russian President Vladimir Putin for escalating aerial attacks on Ukraine and hinted at further U.S. sanctions, adding geopolitical tension to market sentiment.
Oil prices had already seen gains on Friday due to stalled U.S.-Iran nuclear talks, which dampened hopes of additional Iranian oil returning to global supply.
Further upward pressure came from Baker Hughes data showing U.S. oil rig counts dropped to their lowest since November 2021, suggesting future supply tightening.
However, gains were limited by expectations that OPEC+ may boost production by 411,000 barrels per day for July and potentially phase out all remaining voluntary cuts by October.
Together, these developments paint a complex picture for global oil markets, balancing supply concerns, geopolitical risks, and evolving trade negotiations.