Oil prices were steady on Monday after U.S. President Donald Trump extended a deadline for trade talks with the European Union, easing concerns about U.S. tariffs on the bloc that could hurt fuel demand.

Brent crude futures fell 17 cents to $64.61 a barrel by 8:35 a.m. ET while U.S. West Texas Intermediate crude futures fell 18 cents to $61.35 a barrel.

Both contracts were trading higher earlier in the session after Trump said he had agreed to extend a deadline for trade talks with the European Union until July 9, marking another temporary suspension of trade policy.

Global markets rose on Monday and the euro strengthened after Trump delayed imposing 50% tariffs on EU goods.

"Trump's about-face, delaying higher tariffs for the EU, and his comments about possible sanctions on Russia are quite supportive of crude prices today," said UBS analyst Giovanni Staunovo.

Trading volumes are expected to be light on Monday due to the Memorial Day holiday in the U.S.

Trump separately said in a social media post that Russian President Vladimir Putin had gone "absolutely CRAZY" by launching the largest airstrike of the war in Ukraine and that he was considering new sanctions against Moscow.

Brent and WTI traded higher on Friday as limited progress in U.S.-Iran nuclear talks dashed hopes that more Iranian oil would return to global markets, and as U.S. buyers closed positions ahead of the three-day Memorial Day weekend.

Prices also gained on Friday from data from energy services firm Baker Hughes (BKR.O) showing U.S. firms cut the number of operating oil rigs by eight to 465 last week, the lowest since November 2021, raising the prospect of tighter supplies in the future. The gains were capped by expectations that the Organization of the Petroleum Exporting Countries and its allies, a group known as OPEC+, could decide to increase output by 411,000 barrels per day for July at a meeting on Sunday.

Reuters reported this month that the group could end its remaining voluntary production cuts of 2.2 million barrels per day by the end of October, after previously raising its production target by about 1 million barrels per day for April, May and June. (alg)

Source: Reuters