Oil prices edge up on Monday 

Oil prices rose on Monday as markets responded positively to a new US-EU trade deal and prospects of an extended tariff truce with China, easing fears of a broader trade war that could have dampened economic activity and fuel demand.

Brent crude gained 61 cents, or 0.89 per cent, to $69.05 a barrel, while US West Texas Intermediate (WTI) rose 59 cents, or 0.91 per cent, to $65.75.

The US-EU agreement, which imposes a reduced 15 per cent import tariff on most EU goods, helped avert a larger dispute between two major global trading blocs. Meanwhile, US and Chinese officials are meeting in Stockholm ahead of an August 12 deadline to consider extending a pause on higher tariffs.

Despite Monday’s gains, oil prices remained below recent highs due to rising global supply concerns. Venezuela’s state oil firm PDVSA is preparing to restart joint ventures under potential renewed US authorisations, while OPEC+ is expected to continue easing output curbs.

OPEC+ is set to meet Monday, but delegates expect no changes to the plan to boost production by 548,000 barrels per day (bpd) in August. ING forecasts a further supply increase of at least 280,000 barrels per day in September, as producers seek to reclaim market share amid strong summer demand.

JP Morgan estimated global oil demand in July rose by 600,000 barrels per day year-on-year, while stocks climbed 1.6 million barrels per day.

Attribution: Reuters

Subediting: Y.Yasser