Oil prices edged higher on Monday (July 28th) as investors assessed the trade deal between the United States and the European Union, while a stronger US dollar and lower oil imports from India weighed on prices.

Brent crude futures rose 30 cents, or 0.4%, to $68.74 a barrel at 08:13 GMT, while US West Texas Intermediate crude was at $65.43 a barrel, up 27 cents, or 0.4%. The US-EU trade deal and the possible extension of the US-China tariff pause supported global financial markets and oil prices, said IG market analyst Tony Sycamore.

The US-EU trade framework pact announced Sunday imposes a 15% import tariff on most EU goods, while US President Trump said the deal calls for EU purchases of $750 billion in US energy over the coming years. Senior U.S. and Chinese officials will meet in Stockholm on Monday, aiming to extend the tariff truce before the August 12 deadline.

Oil prices pared most of their gains on Monday after Brent crude futures rose above $69 a barrel the previous day. Prices fell from that level as focus shifted to a stronger U.S. dollar and lower oil imports by India, following the removal of other uncertainties in the U.S.-EU deal, said PVM analyst Tamas Varga.

On the supply side, the OPEC+ panel is unlikely to change its existing plan to increase oil production when it meets on Monday, four OPEC+ delegates told Reuters on July 25. ING expects OPEC+ to at least complete the full rollback of 2.2 million barrels per day of additional voluntary supply cuts by the end of September.

On the supply side, Venezuela's state-owned oil company, PDVSA, is also ready to resume operations, after Trump reinstated authorization for its partners to operate and export oil through swaps, company sources said. In the Middle East, Yemen's Houthi group said on Sunday that it would target ships of companies doing business with Israeli ports, regardless of nationality, in what it called the fourth phase of its military operation against Israel related to the Gaza conflict. (alg)

Source: Reuters