Oil prices rose after President Donald Trump said he would shorten the deadline for Russia to agree to a ceasefire in Ukraine, adding to earlier gains from the U.S.-European Union trade deal.

Brent oil prices approached $70 per barrel after closing 1.1% lower on Friday. Trump said the European Union had agreed to buy $750 billion worth of American energy products, although he and European Commission President Ursula von der Leyen appeared to disagree on some key details of the agreement.

Later on Monday, Trump also said he would shorten the 50-day deadline he gave Vladimir Putin to reach a ceasefire in the war in Ukraine. He said he was disappointed that the Russian president had not yet agreed to a ceasefire. Trump had previously threatened Moscow with 100% "secondary tariffs" unless the conflict ceased within 50 days.

Trump's trade policies and threats of retaliation from targeted countries have for months raised concerns about the outlook for energy demand if global economic growth slows, while OPEC+'s decision to rapidly increase production has put the market on track for oversupply later this year.

An OPEC+ committee will meet on Monday to assess the oil market ahead of a meeting on Sunday to decide on production policy for September. Traders and analysts expect the group to raise its quotas again.

U.S. and Chinese officials are scheduled to meet on Monday for trade talks, and the South China Morning Post reported that the two countries are expected to extend their tariff truce, according to unidentified people. (alg)

Source: Bloomberg