FX.co ★ Oil Edges Higher on US-EU Trade Deal

West Texas Intermediate (WTI) crude oil futures increased to approximately $65.3 per barrel on Monday, following the news of a new trade agreement between the United States and the European Union. On Sunday, U.S. President Donald Trump and European Commission President Ursula von der Leyen announced the agreement, which institutes a 15% tariff on most European goods, thereby averting an earlier threat from Trump to impose a 30% tariff. This agreement reflects key aspects of a framework recently established between the U.S. and Japan. These developments have sparked optimism about a potential further easing of global trade tensions, which could bolster expectations for crude oil demand. Meanwhile, investors are closely monitoring the upcoming release of the inaugural survey-based estimates for July's OPEC production. These figures will shed light on the degree to which the five OPEC members engaged in voluntary production cuts have increased their output.