US and EU trade pact shifts oil markets, price changes revealed
Oil prices rose following a US–EU agreement (Photo: Getty Images)
Oil prices rose amid the signing of a trade agreement between the US and the European Union, according to Reuters.
Brent crude futures increased by 0.32%, reaching $68.66 per barrel, while U.S. West Texas Intermediate (WTI) crude traded at $65.38 per barrel, up 0.34%.
According to IG Markets analyst Tony Sycamore, the agreement between the EU and the US, along with the potential extension of suspended tariffs with China, helped ease concerns that higher tariffs might negatively affect fuel demand.
This, as noted, is supporting global financial markets and oil prices. It's worth mentioning that on Friday, oil prices had settled at their lowest level in three weeks, amid concerns over global trade and expectations of increased oil supplies from Venezuela.
US–EU trade agreement
On July 27, US President Donald Trump and European Commission President Ursula von der Leyen held a meeting at the White House.
Following the talks, Trump announced a new comprehensive trade deal with the EU. The agreement includes a base tariff of 15% on EU goods imported to the US.
As part of the deal, Europe will purchase $750 billion worth of American energy and invest an additional $600 billion in the US economy.
The EU will also buy US military equipment worth hundreds of billions of dollars.
According to von der Leyen, zero tariffs will be introduced on a range of products.
