FX.co ★ Oil Rises by Over 2%

WTI crude oil futures experienced a notable increase, climbing more than 2% to reach $66.7 per barrel on Monday. This increase was driven by a wave of optimism stemming from a recently announced trade agreement between the United States and the European Union, alongside new comments from President Trump regarding the situation in Ukraine. President Trump revealed that the EU has committed to purchasing $750 billion worth of US energy, although the specifics of this arrangement remain undisclosed. Additionally, President Trump suggested he might reduce the 50-day deadline given to Russia to negotiate a ceasefire in Ukraine, expressing dissatisfaction over President Putin's lack of action. Previously, Trump had cautioned that if a truce was not achieved, 100% tariffs would be imposed on Russia. While these developments have propelled oil prices, there are persistent concerns regarding the long-term outlook. Trump's trade threats have exacerbated fears of diminished global growth, potentially impacting energy demand adversely. Concurrently, OPEC+ is anticipated to elevate its production target once again, increasing the likelihood of an oversupply situation. Moreover, US and Chinese representatives are currently engaged in trade discussions, with indications that they might extend their existing tariff ceasefire.